implementing payroll for global cloud oracle global human ... · before you start implementing...

Oracle Global Human ResourcesCloudImplementing Payroll for Global

19C

Oracle Global Human Resources CloudImplementing Payroll for Global

19CPart Number F18860-02Copyright © 2011, 2019, Oracle and/or its affiliates. All rights reserved.

Author: Toni Kunz

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Contents

Preface i

1 About This Guide 1Guide Overview ......................................................................................................................................................... 1

2 Getting Started 3Overview of Implementing Global Human Resources Cloud Payroll ........................................................................... 3

HCM Data Roles ....................................................................................................................................................... 3

Security Profiles ........................................................................................................................................................ 7

FAQ for Payroll Data Roles ....................................................................................................................................... 9

Overview of Loading Objects with HCM Data Loader ............................................................................................. 10

3 Understanding Payroll Concepts 13Enterprise Structures ............................................................................................................................................... 13

Payroll Employment Model ...................................................................................................................................... 25

FAQ for Payroll Employment Model ........................................................................................................................ 27

Payroll Relationships ............................................................................................................................................... 28

FAQ for Payroll Relationships .................................................................................................................................. 30

Earnings and Deductions ........................................................................................................................................ 30

Object Groups ........................................................................................................................................................ 40

4 Understanding Geographies, Address Styles, and Country Extensions 43Implementing Global Payroll .................................................................................................................................... 43

Geography Structures ............................................................................................................................................. 43

Geography Validations ............................................................................................................................................ 44

Changing Address Style and Address Validation Settings ....................................................................................... 55

Country Extensions ................................................................................................................................................. 57


5 Understanding Prerequisite Payroll Setup Tasks 61Prerequisite Tasks for Payroll Setup ........................................................................................................................ 61

Payroll Setup Tasks for Financials ........................................................................................................................... 62

Payroll Cost Allocation Key Flexfield Setup ............................................................................................................. 64

Setting Up Reconciliation for Payments .................................................................................................................. 68

6 Setting Up Payroll Fundamentals 71Payroll Business Definitions ..................................................................................................................................... 71

Profile Options ........................................................................................................................................................ 72

Pay Frequency ........................................................................................................................................................ 74

FAQ for Pay Frequency .......................................................................................................................................... 75

Consolidation Groups ............................................................................................................................................. 76

Payroll Definitions .................................................................................................................................................... 77

Time Definitions ....................................................................................................................................................... 83

Run Types .............................................................................................................................................................. 84

User Defined Tables ................................................................................................................................................ 85

7 Setting Up Fast Formulas 91Using Formulas ....................................................................................................................................................... 91

Formula Errors ........................................................................................................................................................ 94

FAQs for Fast Formulas .......................................................................................................................................... 97

8 Setting Up Balances 99Balance Definitions .................................................................................................................................................. 99

Balance Groups and Usages ................................................................................................................................ 102

Balance Exceptions ............................................................................................................................................... 108

Balance Exception Report ..................................................................................................................................... 111

FAQs for Balances ................................................................................................................................................ 116


9 Setting Up Pay Calculation Components 119Calculation Information .......................................................................................................................................... 119

Calculation Cards .................................................................................................................................................. 124

Calculation Value Definitions ................................................................................................................................. 127

Wage Basis Rules ................................................................................................................................................. 133

Component Group Rules ...................................................................................................................................... 135

Calculation Factors ............................................................................................................................................... 141

Rate Definitions ..................................................................................................................................................... 145

FAQ for Rate Definitions ....................................................................................................................................... 163

Values Defined by Criteria ..................................................................................................................................... 164

FAQ for Values Defined by Criteria ........................................................................................................................ 184

Payroll Event Groups ............................................................................................................................................ 185

Element Proration ................................................................................................................................................. 186

Periodicity ............................................................................................................................................................. 190

Retroactive Pay ..................................................................................................................................................... 194

FAQs for Pay Calculation Components ................................................................................................................. 200

10 Setting Up Elements 201Payroll Elements .................................................................................................................................................... 201

Element Classifications .......................................................................................................................................... 202

Element Employment Level ................................................................................................................................... 204

Element Types ...................................................................................................................................................... 205

Element Input Values ............................................................................................................................................ 217

Element Entries ..................................................................................................................................................... 223

Element Eligibility ................................................................................................................................................... 229

Voluntary Deductions ............................................................................................................................................ 232

Involuntary Deductions .......................................................................................................................................... 237

Net-to-Gross Earnings .......................................................................................................................................... 243

Import File Formating ............................................................................................................................................ 248

Setting Up Payroll Processing Rules ..................................................................................................................... 256

FAQs for Elements ................................................................................................................................................ 259


11 Setting Up Payment Methods 261Organization Payment Methods ............................................................................................................................ 261

Personal Payment Methods .................................................................................................................................. 271

Third-Party Payment Methods ............................................................................................................................... 277

Reprocessing Rejected EFT Payments .................................................................................................................. 282

Configuring Payslips and Checks .......................................................................................................................... 286

FAQ for Payment Methods ................................................................................................................................... 292

12 Setting Up Payroll Process Configuration 293Payroll Process Configuration Groups ................................................................................................................... 293

Parameters ............................................................................................................................................................ 293

FAQ for Payroll Process Configuration .................................................................................................................. 303

13 Setting Up Auditing and Data Validation 305Auditing Business Objects .................................................................................................................................... 305

Data Validation ...................................................................................................................................................... 308


Preface

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PrefaceThis preface introduces information sources that can help you use the application.

Using Oracle Applications

Using Applications HelpUse help icons to access help in the application. If you don't see any help icons on your page, click your user imageor name in the global header and select Show Help Icons. Not all pages have help icons. You can also access OracleApplications Help.

Watch: This video tutorial shows you how to find help and use help features.

You can also read Using Applications Help.

Additional Resources

• Community: Use Oracle Cloud Customer Connect to get information from experts at Oracle, the partnercommunity, and other users.

• Guides and Videos: Go to the Oracle Help Center to find guides and videos.

• Training: Take courses on Oracle Cloud from Oracle University.

ConventionsThe following table explains the text conventions used in this guide.

Convention Meaning

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monospace Monospace type indicates file, folder, and directory names, code examples, commands, and URLs.

> Greater than symbol separates elements in a navigation path.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website.

Videos included in this guide are provided as a media alternative for text-based help topics also available in this guide.

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Contacting Oracle

Access to Oracle SupportOracle customers that have purchased support have access to electronic support through My Oracle Support. Forinformation, visit My Oracle Support or visit Accessible Oracle Support if you are hearing impaired.

Comments and SuggestionsPlease give us feedback about Oracle Applications Help and guides! You can send an e-mail to:[email protected].

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Chapter 1About This Guide

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1 About This Guide

Guide OverviewThis guide identifies and describes payroll setup tasks for Oracle Global Payroll.

ObjectivesThis guide supports the implementation team in understanding the following concepts, and the associated requisite setuptasks:

• Payroll concepts

• Geographies and Addresses

• Payroll objects

• Elements, fast formulas, and balances

• Payroll calculation components

• Banking setup and payment methods

• Security profile, auditing, and data validations

For more in-depth information about related tasks, in addition to this guide, the implementation team must refer to thespecific resources mentioned in the Other Documents section.

AudienceThis guide provides practical end-to-end guidance for Oracle Global Payroll implementation teams. It is assumed that youhave working knowledge of the basic principles of payroll and you're familiar with the customary payroll terminology. It is alsoassumed that you have consulted the following two guides:

• Getting Started with Your Oracle Global Human Resources Cloud Implementation guide to complete your initialsetup

• Implementing Global Human Resources guide to complete the related prerequisite tasks required for payrollimplementation

Refer the Oracle Applications Cloud Using Functional Setup Manager guide to have a detailed understanding of theFunctional Setup Manager and the implementation tasks.

Before you start implementing Global Payroll, it's imperative that:

• You have the Payroll license

• You have completed the initial setup of the Oracle Fusion application

• You have completed implementing Global Human Resources and the HR-specific tasks required for payrollimplementation and processing. For example, setting up requisite jurisdictions for tax reporting.

While this guide is primarily intended for the implementation team, it can also be useful for users who run payroll processesafter implementation.


Chapter 1About This Guide

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Organization and FormatThis guide provides step-by-step information to help you understand payroll concepts, implementation task order, and setuptasks necessary for you to implement Oracle Global Payroll. Specific information regarding the requisite tasks can be foundin relevant sections of this document. At the end of each topic are links to related topics. These links help you find additionalinformation available on the Oracle Applications Help.

Other DocumentsFor more information about generic and related tasks, you must refer to the guides at docs.oracle.com/cloud/latest/globalcs_gs/docs.htm.


Chapter 2Getting Started

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2 Getting Started

Overview of Implementing Global Human Resources CloudPayrollTo start an implementation of Global Human Resources Cloud Payroll, a user with the Application Implementation Consultantrole (ORA_PAY_APPLICATION_IMPLEMENTATION_CONSULTANT_JOB) must use the Workforce Deployment offerings inthe Setup and Maintenance work area.

Refer to the Oracle Applications Cloud Using Functional Setup Manager guide to manage the opt-in and setup of yourofferings.

Workforce Deployment OfferingUse this offering to set up enterprise structures, legal entities, and organizations to create and maintain information related topeople, employment, and work structures. The offering also includes tasks for defining payroll business objects required forprocessing and costing payroll, processing payments, and generating statutory reports.

The following table specifies the primary functional areas of this offering. For the full list of functional areas and features in thisoffering, use the Associated Features report. Review the report when you plan the implementation of your offering. The setupsteps required for payroll vary depending on your business requirements.

Functional Area Description

Legal Structures

Manage legal entities, legal reporting units, tax reporting units, payroll statutory units, legalauthorities, legal registrations and jurisdictions, and legal authorities.

Organization Structures

Manage organization structures, business units, and organization models that best suit yourbusiness process.

Workforce Structures

Manage locations, divisions, departments, jobs, positions, and grades.

Elements and Formulas

Configure elements and formulas to record earnings and deductions for processing payroll andreporting.

Payroll

Define payroll objects and payment methods required for payroll calculations and reporting, andprocessing and making payments.

Related Topics

• Oracle Applications Cloud Using Functional Setup Manager

• Plan Your Implementation

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HCM Data Roles

Role Provisioning and DeprovisioningYou must provision roles to users. Otherwise, they have no access to data or functions and can't perform application tasks.This topic explains how role mappings control role provisioning and deprovisioning. Use the Manage Role ProvisioningRules or Manage HCM Role Provisioning Rules task to create role mappings.

Role Provisioning MethodsYou can provision roles to users:

• Automatically

• Manually

◦ Users such as line managers can provision roles manually to other users.

◦ Users can request roles for themselves.

For both automatic and manual role provisioning, you create a role mapping to specify when a user becomes eligible for arole.

Role TypesYou can provision data roles, abstract roles, and job roles to users. However, for Oracle HCM Cloud users, you typicallyinclude job roles in HCM data roles and provision those data roles.

Automatic Role ProvisioningUsers acquire a role automatically when at least one of their assignments satisfies the conditions in the relevant role mapping.Provisioning occurs when you create or update worker assignments. For example, when you promote a worker to amanagement position, the worker acquires the line manager role automatically if an appropriate role mapping exists. Allchanges to assignments cause review and update of a worker's automatically provisioned roles.

Role DeprovisioningUsers lose automatically provisioned roles when they no longer satisfy the role-mapping conditions. For example, a linemanager loses an automatically provisioned line manager role when he or she stops being a line manager. You can alsomanually deprovision automatically provisioned roles at any time.

Users lose manually provisioned roles automatically only when all of their work relationships are terminated. Otherwise, userskeep manually provisioned roles until you deprovision them manually.

Roles at TerminationWhen you terminate a work relationship, the user automatically loses all automatically provisioned roles for which he or sheno longer qualifies. The user loses manually provisioned roles only if he or she has no other work relationships. Otherwise, theuser keeps manually provisioned roles until you remove them manually.

The user who's terminating a work relationship specifies when the user loses roles. Deprovisioning can occur:

• On the termination date



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• On the day after the termination date

If you enter a future termination date, then role deprovisioning doesn't occur until that date or the day after. The RoleRequests in the Last 30 Days section on the Manage User Account page is updated only when the deprovisioning request iscreated. Entries remain in that section until they're processed.

Role mappings can provision roles to users automatically at termination. For example, a terminated worker could acquire thecustom role Retiree at termination based on assignment status and person type values.

Reversal of TerminationReversing a termination removes any roles that the user acquired automatically at termination. It also provisions roles to theuser as follows:

• Any manually provisioned roles that were lost automatically at termination are reinstated.

• As the autoprovisioning process runs automatically when a termination is reversed, roles are provisionedautomatically as specified by current role-provisioning rules.

You must reinstate manually any roles that you removed manually, if appropriate.

Date-Effective Changes to AssignmentsAutomatic role provisioning and deprovisioning are based on current data. For a future-dated transaction, such as a futurepromotion, role provisioning occurs on the day the changes take effect. The Send Pending LDAP Requests processidentifies future-dated transactions and manages role provisioning and deprovisioning at the appropriate time. These role-provisioning changes take effect on the system date. Therefore, a delay of up to 24 hours may occur before users in othertime zones acquire their roles.

Create HCM Data Roles for Global Payroll Implementation UsersIf you have licensed the Oracle Fusion Global Payroll Cloud Service, then you create the following HCM data roles:

• PayrollAdmin_ViewAll

• PayrollMgr_ViewAll

This topic explains how to create these roles using the Assign Security Profiles to Role task.

Create the PayrollAdmin_ViewAll Data RoleIf you're already on the Manage Data Roles and Security Profiles page, then follow this procedure from step 2. Otherwise,sign in as the TechAdmin user and follow these steps:

1. In the Setup and Maintenance work area, go to the following:

◦ Functional Area: Users and Security

◦ Task: Assign Security Profiles to Role

2. In the Search Results section of the Manage Data Roles and Security Profiles page, click Create.3. Complete the fields on the Create Data Role: Select Role page as shown in the following table.

Field Value

Data Role Name

PayrollAdmin_ ViewAll



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Field Value

Job Role

Payroll Administrator

4. Click Next.5. In the sections of the Create Data Role: Security Criteria page, select the predefined security profiles shown in this

table.

Section Security Profile

Organization

View All Organizations

Position

View All Positions

Legislative Data Group

View All Legislative Data Groups

Person

View All People

Document Type

View All Document Types

Payroll

View All Payrolls

Payroll Flow

View All Flows

6. Click Review.7. On the Create Data Role: Review page, click Submit.8. On the Manage Data Roles and Security Profiles page, search for the PayrollAdmin_ViewAll data role to confirm that

it exists.

Create the PayrollMgr_ViewAll Data RoleFollow these steps:

1. In the Search Results section of the Manage Data Roles and Security Profiles page, click Create.2. Complete the fields on the Create Data Role: Select Role page as shown in the following table.

Field Value

Data Role Name

PayrollMgr_ ViewAll

Job Role

Payroll Manager

3. Click Next.4. In the sections of the Create Data Role: Security Criteria page, select the predefined security profiles shown in this

table.


Organization View All Organizations



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Position

View All Positions


View All Legislative Data Groups

Person

View All People

Document Type

View All Document Types

Payroll

View All Payrolls

Payroll Flow

View All Flows

5. Click Review.6. On the Create Data Role: Review page, click Submit.7. On the Manage Data Roles and Security Profiles page, search for the PayrollMgr_ViewAll data role to confirm that it

exists.

Related Topics

• Overview of HCM Data Roles for Implementation Users

Security Profiles

HCM Security ProfilesSecurity profiles identify instances of Human Capital Management (HCM) objects. For example, a person security profileidentifies one or more Person objects, and a payroll security profile identifies one or more Payroll objects. This topic describeshow to create and use security profiles and identifies the HCM objects that need them. To manage security profiles, you musthave the IT Security Manager job role.

Use of HCM Security ProfilesYou include security profiles in HCM data roles to identify the data that users with those roles can access. You can alsoassign security profiles directly to abstract roles, such as employee. However, you're unlikely to assign them directly to jobroles, because users with same job role usually access different sets of data. You're recommended not to assign securityprofiles directly to job roles.

HCM Object TypesYou can create security profiles for the following HCM object types:

• Country

• Document Type

• Job Requisition

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• Legislative Data Group (LDG)

• Organization

• Payroll

• Payroll Flow

• Person

◦ Managed Person

◦ Public Person

• Position

• Transaction

Two uses exist for the person security profile because many users access two distinct sets of people.

• The Managed Person security profile identifies people you can perform actions against.

• The Public Person security profile identifies people you can search for in the worker directory.

This type of security profile also secures some lists of values. For example, the Change Manager and Hire pagesinclude a person list of values that the public person security profile secures. The person who's selecting themanager for a worker may not have view access to that manager through a managed person security profile.

Predefined security profiles provide view-all access to secured objects. For example, the View All Positions security profileprovides access to all positions in the enterprise.

Security Criteria in HCM Security ProfilesIn a security profile, you specify the criteria that identify data instances of the relevant type. For example, in an organizationsecurity profile, you can identify organizations by organization hierarchy, classification, or name. All criteria in a security profileapply. For example, if you identify organizations by both organization hierarchy and classification, then only organizations thatsatisfy both criteria belong to the data instance set.

Access to Future-Dated ObjectsBy default, users can't access future-dated organization, position, or person objects.

Enable access to future-dated objects as follows:

• For organizations, select the Include future organizations option in the organization security profile

• For positions, select the Include future positions option in the position security profile

• For person records, select the Include future people option in the person security profile

Tip: The predefined View All Workers security profile doesn't provide access to future-dated person records.The predefined View All People security profile, which provides access to all person records, including those ofcontacts, does provide access to future-dated records.

Security Profile CreationYou can create security profiles either individually or while creating an HCM data role. For standard requirements, it's moreefficient to create the security profiles individually and include them in appropriate HCM data roles.

To create security profiles individually, use the relevant security profile task. For example, to create a position security profile,use the Manage Position Security Profile task in the Setup and Maintenance or Workforce Structures work area.



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Reuse of Security ProfilesRegardless of how you create them, all security profiles are reusable.

You can include security profiles in other security profiles. For example, you can include an organization security profile in aposition security profile to secure positions by department or business unit. One security profile inherits the data instance setdefined by another.

Related Topics

• Predefined HCM Security Profiles

• Best Practices for HCM Data Roles and Security Profiles

Creating Payroll Security Profiles ExamplesThese examples illustrate different methods you can use to provide access to payrolls for members of the Payroll department.You first organize your payroll definitions into appropriate payroll security profiles using the Manage Payroll Security Profilestask. Then you use the Assign Security Profiles to Role task to select the security profiles included in an HCM data role thatyou provision to a user.

Payroll Period TypeUsing a payroll security profile to organize payroll definitions by payroll period type is the most common example. You createone security profile for monthly payrolls, another for semimonthly payrolls, and so on.

Regional AssignmentsYou can use payroll security profiles to group payrolls by the regions of the target employees' work areas. For example, youcan create one for Canadian facilities and another for European facilities.

Individual ContributorsYour company requires that payroll managers access only the payroll definitions that they manage. In this scenario, the payrollsecurity profile includes only those payrolls.

FAQ for Payroll Data Roles

How do I provision HCM data roles to users?On the Create Role Mapping page, create a role mapping for the role.

Select the Autoprovision option to provision the role automatically to any user whose assignment matches the mappingattributes.

Select the Requestable option if any user whose assignment matches the mapping attributes can provision the rolemanually to other users.

Select the Self-Requestable option if any user whose assignment matches the mapping attributes can request the role.

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Overview of Loading Objects with HCM Data LoaderUse HCM Data Loader for bulk-loading and maintaining payroll data. You can use HCM Data Loader to load these payrollobjects.

• Payroll Relationship

• Object Groups

• Payroll Consolidation Groups

• Payroll Definitions and Time Periods

• Time Definitions

• Payroll Element Run Usage

• User-Defined Tables

• Wage Basis Rules

• Payroll Elements

• Element Entries

• Balance Definitions

• Organization Payment Method

• Personal Payment Method

• Payroll Costing

For more information on how to load these business objects, refer to the Integrating with HCM guide.

HCM Data Loader Transformation FormulaYour existing data or the data that you upload might not be in the format recognized by HCM Data Loader. In such cases,use the HCM Data Loader Transformation formula to transform your data into a format that is supported by HCM DataLoader.

HCM Spreadsheet Data Loader Transformation FormulaYou can use HCM Spreadsheet Data Loader to load all payroll objects that HCM Data Loader supports. As the first step,you create a spreadsheet template for the required object from the Data Exchange Work area and further download thetemplate in CSV format. The HCM Data Loader transformation formula transforms the raw delimited file to a format that suitsthe template.

Related Topics

• Overview of Loading Payroll Details

• Example of Loading Payroll Balance Attribute Definitions

• Overview of Loading Payroll Costing

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• Example of Loading Organization Payment Methods

• Overview of Loading User-Defined Tables

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Chapter 3Understanding Payroll Concepts

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3 Understanding Payroll Concepts

Enterprise Structures

OverviewOracle Fusion Applications have been designed to ensure your enterprise can be modeled to meet legal and managementobjectives. The decisions about your implementation of Oracle Fusion Applications are affected by your:

• Industry

• Business unit requirements for autonomy

• Business and accounting policies

• Business functions performed by business units and optionally, centralized in shared service centers

• Locations of facilities

Every enterprise has three fundamental structures that describe its operations and provide a basis for reporting.

• Legal

• Managerial

• Functional

In Oracle Fusion, these structures are implemented using the chart of accounts and organization hierarchies. Many alternativehierarchies can be implemented and used for reporting. You are likely to have one primary structure that organizes yourbusiness into:

• Divisions

• Business Units

• Departments

Align these structures with your strategic objectives.



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This figure illustrates a grid with Business Axis, representing the enterprise division, Legal Axis representing the companies,and the Functional Axis representing the business functions.

Public Holding CompanySales TeamsManufacturing TeamsService TeamsR & D TeamsSelling Support TeamsFinance TeamHR TeamIT TeamManagement

A1 A2 A3 A.. B1 B2 B3 B.. C1 C2 C3 C..France Company two SA

France Company one SAUK Company Two Ltd

UK Company One LtdUSA Company Two IncUSA Company One Inc

Business Axis

Lega

l Axi

s

Func

tiona

l Axi

s

Business Divisions

AA1 A2 A3 A..

BB1 B2 B3 B..

CC1 C2 C3 C..

Legal StructureThe figure illustrates a typical group of legal entities, operating various business and functional organizations. Your ability tobuy and sell, own, and employ comes from your charter in the legal system. A corporation is:

• A distinct legal entity from its owners and managers.

• Owned by its shareholders, who may be individuals or other corporations.



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Many other kinds of legal entities exist, such as sole proprietorships, partnerships, and government agencies.

A legally recognized entity can own and trade assets and employ people in the jurisdiction in which the entity is registered.When granted these privileges, legal entities are also assigned responsibilities to:

• Account for themselves to the public through statutory and external reporting.

• Comply with legislation and regulations.

• Pay income and transaction taxes.

• Process value added tax (VAT) collection on behalf of the taxing authority.

Many large enterprises isolate risk and optimize taxes by incorporating subsidiaries. They create legal entities to facilitate legalcompliance, segregate operations, optimize taxes, complete contractual relationships, and isolate risk. Enterprises use legalentities to establish their enterprise's identity within the laws of each country in which their enterprise operates.

The figure illustrates:

• A separate card represents a series of registered companies.

• Each company, including the public holding company, InFusion America, must be registered in the countries wherethey do business.

• Each company contributes to various divisions created for purposes of management reporting. These are shown asvertical columns on each card.

For example, a group might have a separate company for each business in the United States (US), but have its UnitedKingdom (UK) legal entity represent all businesses in that country.

The divisions are linked across the cards so that a business can appear on some or all of the cards. For example, the airquality monitoring systems business might be operated by the US, UK, and France companies. The list of business divisionsis on the Business Axis.

Each company's card is also horizontally striped by functional groups, such as the sales team and the finance team. Thisfunctional list is called the Functional Axis. The overall image suggests that information might, at a minimum, be trackedby company, business, division, and function in a group environment. In Oracle Fusion Applications, the legal structure isimplemented using legal entities.

Management StructureSuccessfully managing multiple businesses requires that you segregate them by their strategic objectives, and measure theirresults. Although related to your legal structure, the business organizational hierarchies don't have to be reflected directly inthe legal structure of the enterprise. The management structure can include divisions, subdivisions, lines of business, strategicbusiness units, profit, and cost centers. In the figure, the management structure is shown on the Business Axis. In OracleFusion Applications, the management structure is implemented using divisions and business units as well as being reflected inthe chart of accounts.

Functional StructureStraddling the legal and business organizations is a functional organization structured around people and their competencies.For example, sales, manufacturing, and service teams are functional organizations. This functional structure is represented bythe Functional Axis in the figure. You reflect the efforts and expenses of your functional organizations directly on the incomestatement. Organizations must manage and report revenues, cost of sales, and functional expenses such as research anddevelopment and selling, general, and administrative expenses. In Oracle Fusion Applications, the functional structure isimplemented using departments and organizations, including sales, marketing, project, cost, and inventory organizations.



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Legal EntitiesA legal entity is a recognized party with rights and responsibilities given by legislation.

Legal entities have the following rights and responsibilities to:

• Own property

• Trade

• Repay debt

• Account for themselves to regulators, taxation authorities, and owners according to rules specified in the relevantlegislation

Their rights and responsibilities may be enforced through the judicial system. Define a legal entity for each registered companyor other entity recognized in law for which you want to record assets, liabilities, expenses and income, pay transaction taxes,or perform intercompany trading.

A legal entity has responsibility for elements of your enterprise for the following reasons:

• Facilitating local compliance

• Minimizing the enterprise's tax liability

• Preparing for acquisitions or disposals of parts of the enterprise

• Isolating one area of the business from risks in another area. For example, your enterprise develops property andalso leases properties. You could operate the property development business as a separate legal entity to limit risk toyour leasing business.

The Role of Your Legal EntitiesIn configuring your enterprise structure in Oracle Fusion Applications, the contracting party on any transaction is always thelegal entity. Individual legal entities:

• Own the assets of the enterprise

• Record sales and pay taxes on those sales

• Make purchases and incur expenses

• Perform other transactions

Legal entities must comply with the regulations of jurisdictions, in which they register. Europe now allows for companies toregister in one member country and do business in all member countries, and the US allows for companies to register in onestate and do business in all states. To support local reporting requirements, legal reporting units are created and registered.

You are required to publish specific and periodic disclosures of your legal entities' operations based on different jurisdictions'requirements. Certain annual or more frequent accounting reports are referred to as statutory or external reporting. Thesereports must be filed with specified national and regulatory authorities. For example, in the United States (US), your publiclyowned entities (corporations) are required to file quarterly and annual reports, as well as other periodic reports, with theSecurities and Exchange Commission (SEC), which enforces statutory reporting requirements for public corporations.

Individual entities privately held or held by public companies don't have to file separately. In other countries, your individualentities do have to file in their own name, as well as at the public group level. Disclosure requirements are diverse. Forexample, your local entities may have to file locally to comply with local regulations in a local currency, as well as beingincluded in your enterprise's reporting requirements in different currency.

A legal entity can represent all or part of your enterprise's management framework. For example, if you operate in a largecountry such as the United Kingdom or Germany, you might incorporate each division in the country as a separate legal



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entity. In a smaller country, for example Austria, you might use a single legal entity to host all of your business operationsacross divisions.

What's a legal employer?A legal employer is a legal entity that employs workers. You define a legal entity as a legal employer in the Oracle FusionLegal Entity Configurator.

The legal employer is captured at the work relationship level, and all assignments within that relationship are automaticallywith that legal employer. Legal employer information for worker assignments is also used for reporting purposes.

Legislative Data GroupsLegislative data groups are a means of partitioning payroll and related data. At least one legislative data group is requiredfor each country where the enterprise operates. Each legislative data group is associated with one or more payroll statutoryunits. Each payroll statutory unit can belong to only one legislative data group.

Payroll-related information, such as elements, is organized by legislative data group. Each legislative data group:

• Marks a legislation in which payroll is processed.

• Is associated with a legislative code, currency, and its own cost allocation key flexfield structure.

• Is a boundary that can share the same set up and still comply with the local laws.

• Can span many jurisdictions as long as they're within one country.

• Can contain many legal entities that act as payroll statutory units.

Payroll Statutory UnitsPayroll statutory units are legal entities that are responsible for paying workers, including the payment of payroll tax andsocial insurance. A payroll statutory unit can pay and report on payroll tax and social insurance on behalf of one or many legalentities, depending on the structure of your enterprise. For example, if you're a multinational, multiple company enterprise,then you register a payroll statutory unit in each country where you employ and pay people. You can optionally register aconsolidated payroll statutory unit to pay and report on workers across multiple legal employers within the same country.You associate a legislative data group with a payroll statutory unit to provide the correct payroll information for workers.

Plan Legal Reporting UnitsEach of your legal entities has at least one legal reporting unit. Some legal reporting units can also be referred to asestablishments. You can define either domestic or foreign establishments. Define legal reporting units by physical location,such as sales offices. For example, set up legal reporting units to represent your company and its offices for tax reporting.

Planning Legal Reporting UnitsPlan and define your legal reporting units at both the local and national levels if you operate within the administrativeboundaries of a jurisdiction that's more granular than country. For example, your legal entity establishes operations in acountry that requires reporting of employment and sales taxes locally as well as nationally. Therefore, you need more than one



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legally registered location to meet this legal entity's reporting requirements in each area. Additionally, legal entities in Europeoperate across national boundaries, and require you to set up legal reporting units for the purposes of local registrationin each country. There can be multiple registrations associated with a legal reporting unit. However, only one identifyingregistration can be defined by the legal authority used for the legal entity or legal reporting unit and associated with the legalreporting unit.

What's a tax reporting unit?Use a tax reporting unit to group workers for the purpose of tax and social insurance reporting. A tax reporting unit is theOracle Fusion Human Capital Management (HCM) version of the legal reporting unit in Oracle Fusion Applications.

To create a tax reporting unit, you use the Oracle Fusion Legal Entity Configurator to define a legal entity as a payroll statutoryunit. When you identify a legal entity as a payroll statutory unit, the application transfers the legal reporting units that areassociated with that legal entity to Oracle Fusion HCM as tax reporting units. You can then access the tax reporting unit usingthe Manage Legal Reporting Unit HCM Information task.

If you identify a legal entity as a legal employer, and not as a payroll statutory unit, you must enter a parent payroll statutoryunit. The resulting legal reporting units are transferred to Oracle Fusion HCM as tax reporting units, but as children of theparent payroll statutory unit that you entered, and not the legal entity that you identified as a legal employer.

How Legal Employers Work with Payroll Statutory Units and TaxReporting UnitsWhen you set up legal entities, you can identify them as legal employers and payroll statutory units, which makes themavailable for use in Oracle Fusion Human Capital Management (HCM). Depending on how your organization is structured, youmay have only one legal entity that is also a payroll statutory unit and a legal employer, or you may have multiple legal entities,payroll statutory units, and legal employers.

Legal Employers and Payroll Statutory UnitPayroll statutory units enable you to group legal employers so that you can perform statutory calculations at a higher level,such as for court orders or for United Kingdom (UK) statutory sick pay. In some cases, a legal employer is also a payrollstatutory unit. However, your organization may have several legal employers in one payroll statutory unit. A legal employer canbelong to only one payroll statutory unit.

Payroll Statutory Units and Tax Reporting UnitsPayroll statutory units and tax reporting units have a parent-child relationship, with the payroll statutory unit being the parent.

Tax Reporting Units and Legal EmployersTax reporting units are indirectly associated with a legal employer through the payroll statutory unit. One or more tax reportingunits can be used by a single legal employer, and a tax reporting unit can be used by one or more legal employers. Forexample, assume that a single tax reporting unit is linked to a payroll statutory unit. Assume also that two legal employers areassociated with this payroll statutory unit. In this example, both legal employers are associated with the single tax reportingunit.

Use the Manage Legal Reporting Unit HCM Information task to designate an existing legal reporting unit as a tax reportingunit. If you create a new legal reporting unit that belongs to a legal employer (that is not also a payroll statutory unit), you



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select a parent payroll statutory unit and then, when you run the Manage Legal Reporting Unit HCM Information task, youdesignate it as a tax reporting unit and select the legal employer.

Related Topics

• Examples of HCM Organization Models

Examples of HCM Organization Models for PayrollThese examples illustrate different models for human capital management (HCM) organizations that include a legislative datagroup (LDG). This example includes LDGs, which aren't an organization classification, to show how to partition payroll data byassociating them with a payroll statutory unit.

Simple ConfigurationThis example illustrates a simple configuration that doesn't include any tax reporting units.

Note the following:

• The legal employer and payroll statutory units are the same, sharing the same boundaries.

• Reporting can only be done at a single level. Countries such as Saudi Arabia and the United Arab Emirates (UAE)might use this type of model, as these countries report at the legal entity level.

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This figure illustrates a simple configuration where the enterprise has only one legal entity, which is both a payroll statutory unitand a legal employer.

Division


Legal Employer

PSU

Legal Entity

InFusion Corporation Enterprise

Multiple Legal Employers and Tax Reporting UnitsThis example illustrates a more complex configuration. In this enterprise, you define one legal entity, InFusion US as a payrollstatutory unit with two separate legal entities, which are also legal employers. This model shows multiple legal employers thatare associated with a single payroll statutory unit. Tax reporting units are always associated with a specific legal employer (oremployers) through the payroll statutory unit.

The implication is that payroll statutory reporting boundaries vary from human resources (HR) management, and you cancategorize the balances separately by one of the following:

• Payroll statutory unit

• Legal employer

• Tax reporting unit

This configuration is based on tax filing requirements, as some tax-related payments and reports are associated with a higherlevel than employers. An example of a country that might use this model is the US.



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This figure illustrates an enterprise that has one payroll statutory unit and multiple legal employers and tax reporting units.

US Division

US Legislative Data Group

InFusion Corp US Tax Reporting

Unit

PSU

InFusion US Legal Entity


Legal Employer Legal

Employer

Tax Reporting Unit

InFusion Inc 1 Legal Entity

InFusion Holding Tax Reporting

Unit

InFusion Inc 2 Legal Entity

One Payroll Statutory Unit and Two Tax Reporting UnitsThis model makes no distinction between a legal employer and a payroll statutory unit. You define tax reporting units assubsidiaries to the legal entity.

In this enterprise, legal entity is the highest level of aggregation for payroll calculations and reporting. Statutory reportingboundaries are the same for both payroll and HR management. An example of a country that might use this model is France.



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This figure illustrates an example of an organization with one legal entity. The legal entity is both a legal employer and a payrollstatutory unit and that has two tax reporting units.

Division

France Legislative Data Group

Legal Employer

PSU

InFusion France Legal Entity


InFusion Lyon Tax Reporting Unit

InFusion Colombes Tax Reporting Unit

One Payroll Statutory Unit with Several Tax Reporting UnitsIn this model, the enterprise has one legal entity. Legal employers and tax reporting units are independent from each otherwithin a payroll statutory unit, because there is no relationship from a legal perspective. Therefore, you can run reporting onboth entities independently.

Using this model, you wouldn't typically:

• Report on tax reporting unit balances within a legal employer

• Categorize balances by either or both organizations, as required

An example of a country that might use this model is India.



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This figure illustrates an enterprise with one legal entity that's a payroll statutory unit and a legal employer. The tax reportingunits are independent from the legal employer.

InFusion CorporationEnterprise

IndiaLegislative Data

Group

InFusion Bangalore

Tax Reporting Unit

PT1Tax

Reporting Unit

PT2Tax

Reporting Unit

PF1Tax

Reporting Unit

ESI1Tax

Reporting Unit

ESI2Tax

Reporting Unit

IT1Tax

Reporting Unit

InFusion Hyderabad

Tax Reporting Unit

PF2Tax

Reporting Unit

IT2Tax

Reporting Unit

InFusion India Pvt. LtdLegal Entity

PSU

Legal Employer

India Division

Multiple Payroll Statutory Units with Several Tax Reporting UnitsIn this model, the enterprise has two legal entities. The legal employers and tax reporting units are independent from eachother within a payroll statutory unit, because there is no relationship from a legal perspective. Therefore, you can run reportingon both entities independently.

Using this model, you wouldn't typically:

• Report on tax reporting unit balances within a legal employer

• Categorize balances by either or both organizations, as required



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An example of a country that might use this model is the United Kingdom (UK).

This figure illustrates an enterprise with two legal entities, and legal employers and tax reporting units are independent fromeach other.

InFusion CorporationEnterprise

Division

Legal Entity

PSU

Legal Employer

Tax Reporting

Unit

Legal Entity

PSU


Tax Reporting

Unit

Legal Entity

Legal Employer

Payroll Employment Hierarchy Profile OptionsYou can use profile options to specify the values that you want to display for each payroll employment hierarchy level. Thehierarchy appears in the View Person Process Results pages. You can specify up to three values at each level to help identify



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the record. For example, you might select legal employer name and job name to identify assignment records, and assignmentname and number to identify assignment records.

Depending on the employment model used in your enterprise, you can use these levels to set up your payroll employmenthierarchy:

• Payroll relationship

• Assignments

To define profile option settings and values, select the Manage Payroll Employment Hierarchy Profile Option Valuestask.

Profile Options for the Payroll Relationship LevelThis table lists the profile option codes and available profile values at the site level for the payroll relationship level of thepayroll employment hierarchy.

Profile Option Codes Profile Values

PAY_ EMP_ HIERARCHY_REL_DESC_1 PAY_ EMP_ HIERARCHY_REL_DESC_2 PAY_ EMP_ HIERARCHY_REL_DESC_3

Payroll Relationship Number Payroll Statutory Unit Name Payroll Relationship Type

Profile Options for the Assignment LevelThis table lists the profile option codes and available profile values at the site level for the assignment level of the payrollemployment hierarchy.

Profile Option Codes Profile Values

PAY_ EMP_ HIERARCHY_ASG_DESC_1 PAY_ EMP_ HIERARCHY_ASG_DESC_2 PAY_ EMP_ HIERARCHY_ASG_DESC_3

Assignment Name Assignment Number Employment Category Grade Name Job Name Legal Employer Name Location Name Position Name

Override Site-level Values with User-level ValuesYou can override site-level values at the user level. For example, you might use position as the default value. Override thedefault value with job for the payroll administrator who manages records for a group of workers who are not assigned topositions.



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Payroll Employment Model

Payroll Employment ModelIn the payroll employment model, each person has a payroll relationship to a payroll statutory unit (PSU), and one or moreassignments to a payroll and other employment structures. Some element entries, typically deductions, are held at the payrollrelationship level, and others at lower employment levels.



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Comparing the HR and Payroll Employment ModelsThe following figure contrasts the HR employment model and the payroll employment model in an example where two legalemployers belong to one PSU. In this example, David Ellis has two assignments. The resulting structure creates two workrelationships in the HR model and one payroll relationship in the payroll model.

Sun PowerPayroll Statutory Unit

Manufacturing InstallationLegal Employers

David Ellis David Ellis

Work Relationship Manufacturing

Work Relationship Installation

Payroll Relationship Payroll Statutory Unit

Sun Power

Assignment Project Manager

Assignment Trainer

Assignment Project Manager

Assignment Trainer

Related Topics

• Employment Level Options for Elements



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FAQ for Payroll Employment Model

How do I diagnose payroll employment model setup issues?After creating enterprise structures, you can run the Payroll Employment Model Setup Validation test if you have access tothe Diagnostic Dashboard. This test checks whether legal employers are associated with a legislative data group. Select RunDiagnostic Tests from the Setting and Actions menu in the global area.

Payroll Relationships

Payroll RelationshipsA payroll relationship represents the association between a person and a payroll statutory unit (PSU), which is the legal entityresponsible for employee payment. Payroll relationships group a person's employment assignment records based on thepayroll statutory calculation and reporting requirements. Payroll relationships facilitate the capture and extraction of HR andpayroll-related data sent to a third party, such as a payroll provider for payroll processing.

Payroll processing always occurs at the payroll relationship level. When you display the payroll process results for a person,you first select the person's payroll relationship record and then drill down to view details.

Payroll relationships aggregate balances at the payroll relationship level. Within a payroll relationship, payroll processes canaggregate balances for multiple assignment records. Balances don't span payroll relationships.

Create Payroll Relationship Records and Mapping RulesThe mapping between the system person type and the payroll relationship type must exist for certain processes. Forexample, to create a payroll relationship record automatically during the rehire process. You must use the payroll relationshiptypes predefined in the application. You can't create your own.

This table shows the predefined payroll relationship type.

Payroll Relationship Type Description

Standard

Person types mapped to this payroll relationship type are included in payroll runs.

Element Entry Only

Person types mapped to this payroll relationship type have only element entries created for themand are excluded from payroll processing.

Relationship mapping rules, which map system person types to payroll relationship types, can vary by country or territory. Themapping rules are predefined for each legislation.

This table shows the mapping between system person types and payroll relationship types applicable for Canada whereContingent Worker type, Retiree, and Nonworker Unpaid type are excluded from payroll processing.



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System Person Type Payroll Relationship Type

Contingent Worker

Element Entry Only

Employee

Standard

Nonworker Paid

Standard

Nonworker Unpaid

Element Entry Only

Retiree

Element Entry Only

A payroll relationship can't end while active employment assignments are present. When all employment assignments areended, a payroll relationship could either remain active or become end dated. A payroll relationship depends on the legislationand the payroll relationship rules applicable for the legislation. For example:

• For the US, relationships that remain active enables future rehire within the same payroll relationship and PSU.

• For the UK, for a relationship that gets terminated, a new payroll relationship is created within the same payrollrelationship and PSU, for the rehire.

Related Topics

• Element Duration Dates

• How to Set End Dates for Terminations

• Time Card Required Option

Payroll Relationship RulesThe payroll relationship rule determines what happens when you terminate the last active employment assignment record fora payroll relationship. The rule also determines whether the application creates a payroll relationship when you add a newassignment record for an employee. This topic describes the following predefined rules that localizations can use.

Lifetime RuleWhen a work assignment is terminated, the associated payroll relationship continues to remain active. When you create anassignment, the application searches for an active payroll relationship of the same type and for the same payroll statutoryunit (PSU). If found, the new assignment is attached to the existing active payroll relationship. If not, a new payroll relationshipis generated.

Continuous Period of Service RuleWhen a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. Subsequently,when you create an assignment, the application searches for an active payroll relationship of the same type and for thesame PSU. If a payroll relationship exists, date validation occurs to determine whether to use the existing payroll relationshipor to create one. The application compares the start date of the new assignment to the last standard earnings date of theexisting payroll relationship. If the start date is before the last standard earnings date, the application uses the existing payrollrelationship, otherwise, it creates one.

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Independent RuleWhen a work assignment is terminated, the associated payroll relationship becomes inactive and is terminated. When youcreate an assignment, a new payroll relationship is created. Each payroll relationship is associated with one work assignment.

Related Topics

• How Terminations Affect Payroll Processing

FAQ for Payroll Relationships

When should I change payroll relationship rules?You should not need to change payroll relationship rules after implementation. If there are any updates to payroll relationshiprules after employment records already exist, those updates will affect only newly created employment records. If employmentrecords already exist, it is best not to change payroll relationship rules to ensure that new and existing employment recordshave the same rules.

Earnings and Deductions

Payroll Calculation InformationWhen you create an element, the application generates the rules and definitions required to calculate earnings or deductionamount. For all types of elements, these rules and definitions include elements, formulas, and processing rules.

This topic explains the payroll calculation information rules and definitions generated for user-defined elements with one of thefollowing categories:

• Absence

• Benefit

• Involuntary Deductions

• Time card

All predefined tax and social insurance elements also include payroll calculation information rules and definitions.

Note: Elements that use calculation information definitions do not capture the values required for the calculationon element input values.

Task SummaryThe following table summarizes the purpose of each type of calculation information and the task you can use to view or edit it.

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Calculation Information Description Task

Payroll calculation information

The manage payroll calculation informationtask groups rates and rules used by thepayroll run to calculate values for user-defined earnings, and deductions. Predefined elements such as tax andsocial insurance rules also use the payrollcalculation feature to provide a group of ratesand rules which vary by country or territory.

Use the Manage Payroll CalculationInformation task.

Payroll components

A payroll component is a group of rates andrules that the payroll run uses to calculatevalues for earnings and deductions. When you create elements in certainclassifications and categories, such asinvoluntary deductions, the element templatecreates a payroll component with the samename. You can manage payroll components usingpredefined component groups, which varyby country or territory but may include socialinsurance, taxes, retirement plans, involuntarydeductions, and benefits.

Use the Manage Payroll CalculationInformation task to view payroll componentsand their associated rules.

Wage basis rules

Wage basis rules determine the earningsthat contribute to a deductible amount or,for exemptions, the elements that reduce theamount subject to deduction. For example, wage basis rules might definewhich secondary classifications of standardand supplemental earnings are subject to aparticular tax. Rules may vary based on reference criteriasuch as a worker's place of residence.

Use the Manage Component Group Rulestask to define the rules and references. Use the Manage Calculation Cards task toenter reference values for workers.

Calculation value definitions

Calculation value definitions store calculationrates and rules, which may vary based onother criteria. For example you can use calculation valuedefinitions to calculate regional income taxrates for employees, which vary based ontheir income levels. The calculation value definition controlswhich calculation values are enterable on acalculation card.

Use the Manage Calculation Value Definitionstask to view predefined definitions and thedefinitions that element templates create.

Note: You can edit definitions thatelement templates create, such asadding default calculation values.

Calculation factors

Calculation factors indicate which calculationvalue definition to use when calculating theamount. For example, a calculation factor mightidentify which set of tax rates to use basedon the tax code of the employee.

Use the Manage Elements, Element Overviewtask to access calculation factors. Use the Manage Payroll CalculationInformation task to create new calculationfactors. Normally, you don't need to createnew factors, but if you do, you must also edit



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If tax rates vary based on a factor such asa person's filing status, then filing status isdefined as a calculation factor reference.Thus, an element may have multiplecalculation factors, one for each unique set ofrules and references values.

the element's payroll formula to use the newcalculation factors.

Calculation components

When an element template creates a payrollcomponent, it also creates calculationcomponents that you can enter on personalcalculation cards to enter specific details forthe person.

Use the Manage Calculation Cards task toenter calculation components for a person.

Calculation types

A calculation type describes a way ofcalculating a value. For example, calculatinga value as a Flat Amount or by applying aRate to a value. There is a predefined set of CalculationTypes.

Use the Manage Calculation Value Definitionstask to view calculation types.

Calculation steps A Calculation Step is a name or label that

denotes part of a payroll calculation.

For example, a time calculation can consist ofthe following parts:

• Calculate hours worked• Calculate hourly rate

A regional tax calculation can consist of thefollowing parts:

• Calculate Exemptions• Calculate Allowances• Calculate Tax

Each one of these is a calculation step in afast formula.


Calculation methods

Predefined calculation methods are a way ofperforming a payroll calculation. For example, a tax could be calculated usinga cumulative year-to-date payroll balance ora periodic payroll value.


Calculation factors

Calculation factors create an associationbetween an element, calculation step, and acalculation value definition. Calculation factors indicate which calculationvalue definition to use when calculating theamount. Calculation factors can support complexcalculations such as tax rates. For example,

Use the Manage Elements, Element Overviewtask.



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if a tax rate varies based on a factor such asa person's filing status the filing status can bedefined as a calculation factor reference thus,an element may have multiple calculationfactors, one for each unique set of rules andreferences values.

Related Topics

• Examples of Payroll Calculation Information at the Legislative Level

• Wage Basis Rules

• Calculation Factors

• How You Add Involuntary Deductions to a Calculation Card

Define Elements, Balances, and FormulasThe Define Elements, Balances, and Formulas task list contains the tasks required for creating payroll elements forcompensation and HR management. You can use this task list if you're recording earnings, deductions, and other payrolldata for reporting, compensation and benefits calculations, or transferring data to a third-party payroll provider.

Note: If you're using Oracle Fusion Global Payroll, use the Define Payroll task list instead. The Define Payrolltask list includes additional tasks required to set up payroll processing.

Required TasksYour business requirements and product usage determine which required tasks and other payroll-related tasks you perform.The required tasks are:

• Manage Elements

• Manage Payroll Definitions, which is usually required to support elements

• Manage Consolidation Groups, which is required for creating payroll definitions

If you use predefined Payroll Interface extracts to transfer data to a third-party payroll provider, you may need to createelement subclassifications, balances, organization payment methods, and object groups. Refer to the Global Payroll Interfacedocumentation for more information.

Prerequisite TasksThe Workforce Deployment and Compensation Management offerings include the Define Elements, Balances, and Formulastask list. These offerings contain other tasks that you must complete first, as shown in the following table.

Task Use To Why It's Important

Manage Legal Entities

Create payroll statutory units.

Ensures that hiring employees automaticallycreates payroll relationship records.



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Task Use To Why It's Important

Manage Legal Entity HCM Information

Associate a legislative data group with eachpayroll statutory unit.

As above.

Manage Features by Country or Territory

Select Payroll Interface as the extension forany countries or territories where you extractHR data to send to a third-party payrollprovider.

Ensures that you use the appropriate elementtemplates to create earnings.

Configure Legislations for Human ResourcesUse this task to create and edit legislative data for a country or territory that doesn't have a predefined country extension. Itguides you through configuring some payroll objects and values required for creating elements, including:

• Tax year start date

• Period of service on rehire rules

• Default currency

• Element classifications

• Component groups

• Payment types

Note: Complete this task before the other tasks in this task list.

Manage ElementsUse elements to communicate payment and distribution information to payroll applications from the source applications listedin the following table.

Source Application Element Purpose Requirements

Compensation

• Earnings and deduction elements,such as bonuses, overtime earnings,and voluntary deductions.

• Information elements to loaduser-defined data to use during aworkforce compensation cycle.

Required for compensation plans andbase pay, no matter which HR and payrollapplications you're using.

Benefits

• Deduction elements to record activityrate calculation results, such as:

◦ Employee contributions andemployer distributions formedical options

◦ Flex credits for flex benefits

• Earnings elements if you want todisburse unused credits as cash.

Required if you use element entries tocommunicate benefits rate information to anypayroll application.

Note: You must select PayrollRelationship as the employment level.

Time and Labor

Earnings elements with input value of Hours.

Required if you pay worked time based ontime card entries.



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Source Application Element Purpose Requirements

Absence Management

Earnings elements with input value of Hours.

Required if you process absence paymentsand book employer liability of accrualbalances through Global Payroll or GlobalPayroll Interface.

Manage Payroll DefinitionsEmployees' employment terms or assignments include their assigned payrolls. The payroll definition supplies the payrollperiod frequency and end dates, which some applications use for calculations. The following table shows which OracleFusion HCM applications require payroll definitions.

Application Payroll Definition Required? Usage Conditions

Global Payroll Interface

Yes

N/A

Compensation

Yes

N/A

Benefits

Optional

Required to use the payroll period frequencyto calculate communicated rates or valuespassed to payroll.

Time and Labor

Optional

Required to pass time entries to payrollcalculation cards for payroll processing or forextract to a third-party payroll application.

Absence Management

No

N/A

Manage Consolidation GroupsYou must have at least one consolidation group for each legislative data group where you create elements. Payroll definitionsrequire a consolidation group.

Other Payroll-Related Setup TasksYour implementation might require other tasks in the Define Elements, Balances, and Formulas task list, as shown in thefollowing table.

Task Requirements

Manage Organization Payment Methods

If you want to record personal payment methods for your employees, you must create organizationpayment methods and associate them with your payroll definitions. Organization payment methodsdefine the combination of payment type and currency to use for payments to employees or externalparties.

Manage Element Classifications

Primary element classifications are predefined. If you run the Calculate Gross Earnings process(provided with Global Payroll Interface), you might create subclassifications to feed user-definedbalances.



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Task Requirements

Manage Fast Formulas You can write formulas for a number of uses, including:

• Validating user entries into element input values• Configuring compensation, benefit, and accrual plan rules• Calculating periodic values for gross earnings and defining element skip rules for the

Calculate Gross Earnings process (provided with Global Payroll Interface)

Manage Balance Definitions

If you're using Global Payroll Interface, creating earnings elements creates balances automatically.You can edit these generated balance definitions. If you're using the Calculate Gross Earnings process, you may want to create additional balances forextracts or reporting.

Manage Object Groups

You can create object groups to specify subsets of elements or payroll relationships to include in areport or process, such as the Calculate Gross Earnings process.

Related Topics• Overview of Using Formulas

• Payroll Definitions

• Payroll Balance Definitions

• Implementing Payroll Interface: Procedure

How Elements Hold Payroll Information for Multiple FeaturesElements are building blocks that help determine the payment of base pay, benefits, absences, and other earnings anddeductions. You associate your elements with salary bases, absence plans, and the benefits object hierarchy to determinehow you will use the elements.

This table provides some examples of how you can use elements.

Element Usage Examples of Elements

Base Pay Management

Annual Salary Basis Monthly Salary Basis Hourly Salary Basis

Absence Management

Absence Payment Leave Liability Discretionary Disbursement Final Disbursement

Benefits

Health Care Deduction

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Element Usage Examples of Elements

Savings Plan Deduction Employee Stock Purchase Deduction

Time and Labor

Regular Hourly Earnings Overtime Earnings Shift Earnings

Payroll

Regular Standard Earnings Bonus Earnings Tax Deduction Involuntary Deduction

Base Pay ManagementTo manage base pay, you attach an earnings element to each salary basis (hourly, monthly or annual) for each worker.When a manager or compensation specialist enters a base pay amount for a worker, the application writes the amount to anelement entry using the element input value associated with the worker's salary basis. Payroll processing uses the elemententry to generate payment amounts.

Absence ManagementYou can manage worker absences and corresponding entitlements. You can create absence types based on predefinedabsence patterns, and associate them with absence plans. You can associate an absence element with an absence plan totransfer the following information for payroll processing:

• Payments for absent time, for example, during maternity or long term sickness.

• Accrual disbursement at the end of absence plan year

• Accrual disbursement when plan enrollment ends

• Absence liability amounts

You can process the payments in Oracle Fusion Global Payroll or use HCM extracts to transfer the information to a third-partypayroll application for processing.

BenefitsAttach elements at various levels in the benefits object hierarchy to create deductions and earnings that you can process in apayroll run to calculate net pay.

Time and LaborCreate elements for use in time cards, and calculate payroll or gross earnings based on the time card entries transferred topayroll. For example, for Oracle Fusion Time and Labor, you run processes which create dependent payroll attributes andtime card fields for element input values. You can automate the routine import of time card entries to payroll using predefinedflows.



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PayrollFor Oracle Fusion Global Payroll, you define earnings and deduction elements, such as bonus and overtime earnings andinvoluntary deductions. These elements incorporate all the components required for payroll processing, including formulas,balances, and formula result rules.

Related Topics

• Create Payroll Elements

• Define Payroll Elements for an Absence Accrual Plan

• Create Earnings Elements for Payroll

• Create Elements for Time Card Entries

Overview of Define Earning and Deduction DefinitionsThe Define Earning and Deduction Definitions task list in the Setup and Maintenance work area contains the tasks required toset up elements and payroll components. Your implementation may include a few predefined elements, usually for legislativetax deductions. Use the Manage Elements task to create additional elements and the associated objects required to supporttheir processing. The objects vary depending on the element classification and category.

Manage Element ClassificationsElements are grouped into primary classifications that control their sequence of processing and the balances they feed.Secondary classifications are subsets of the primary classifications, which you may use to manage wage basis rules fordeductions and taxes.

The primary classifications and some secondary classifications are predefined. You can't remove or change predefinedclassifications.

What you can do:

• Create additional balances that the primary classifications feed.

• Create secondary classifications, if required.

• Specify costing setup options and frequency rules for element classifications. The default frequency rule is alwayseach period.

Manage ElementsUse the Manage Elements task to review elements and to create new ones. When you create an element, your selectionof the element classification and category determines the questions on a predefined template. Submitting the templategenerates an element, which you can edit, as required.

You must create at least one element eligibility record for all predefined and newly created elements.

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The following figure shows the tasks involved.

Create Element

Select Element Classification and

Category

Complete Predefined Template

Manual edits? Create Element Eligibility Record

Yes

Create additional input values, balance

feeds, if required

No

Note: Make sure you set the country extension to Payroll using the Manage Features by Country or Territorytask before you create elements for payroll processing. This setting ensures that you use the appropriateelement templates.

Creating certain elements also creates component groups, calculation value definitions, and other calculation information. Forexample, creating involuntary deductions and pension deductions may create these additional objects. Use the relevant tasksin the Define Earning and Deduction Definitions task list to review the objects generated for each element.

Payroll components are associated with a set of rates and rules used for calculation or reporting. These components conformto manage calculation value definitions

What you can do:

• Review the tables that hold the rates and other values used to calculate deduction and exemption amounts.

• Modify some value definitions. For example, you might enter a default payee for pension payments.

• Create new calculation ranges, if required

Manage the calculation information for elements that generate payroll components, such as involuntary deductions andstatutory deductions.

What you can do:

• Review the calculation information supplied for your country or territory, such as the wage basis rules and calculationfactors

• Create new calculation factors, if required.

Component groups are predefined categories of calculation components managed by component group rules.



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What you can do:

• View rules for component groups.

• Modify the rules, such as wage basis rules, for some deductions

After setup, you add calculation components to personal calculation cards by loading data, such as time cards, or usingthe Manage Calculation Cards task in the Payroll Calculation work area. In most cases, hiring a worker creates a statutorydeduction card automatically.

Add Eligibility Rules For Predefined ElementsThe task list includes this task as a reminder. Use the Manage Elements task to define at least one element eligibility recordfor every predefined and newly created element.

Note: Make sure you create an eligibility record for the statutory deduction elements like Tax, before you starthiring workers.

Element eligibility determines who can receive entries of the element. Do the following:

1. Create a name for the element eligibility record. Use a naming convention similar to the element's to easily identifythe record, for example, when you set up costing for the element's eligibility record.

2. Restrict who can receive entries of the element by specifying eligibility criteria. For elements applicable to all workers,create eligibility without specifying any criteria.

Manage Rate DefinitionsDefine any rates that are based on calculated payroll balances, such as an employee's average salary during the last threemonths. You can use rate definitions in absence plans and formulas.

You can define rates to be:

• Monetary, such as a pay rate, or non-monetary, such as an absence accrual rate defined in days or hours

• Based on a combination of elements, or a single element

Related Topics

• Elements

• Element Eligibility

• How You Define Voluntary and Pre-statutory Deductions

• Create Earnings Elements for Payroll

Object Groups

Overview of Object GroupsObject groups are sets of elements, persons, or deduction cards. Use object groups to define subsets of objects forprocessing or reporting. You can manage object groups from the Payroll Calculation work area.



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You can define one of these object groups.

• Element

• Payroll Relationship

• Work Relationship

Element GroupsUse Element groups to limit the elements processed for payroll, reporting, or cost distribution purposes.

This table explains the usages for an element group.

Element Group What It Does

Run group

Specifies the elements to be processed in a payroll run.

Distribution group

Defines the elements on which the cost results are distributed

Configuration group

Restricts the elements that can be updated on the Element Entries page.

All element groups are static. You can select element classification to include in or exclude from the group. You can alsoselect specific elements to include in or exclude from the group.

Payroll Relationship GroupsUse Payroll relationship groups to limit the persons processed for payroll, data entry, and reporting.

Defining a payroll relationship group is a two-step process.

1. Specify a payroll definition. Every group is limited to the payroll relationships assigned to a single payroll that youselect.

2. Optionally, define the group to be either static or dynamic.

a. To define a static group, select the payroll relationships and assignments to include in or exclude from thegroup.

b. To define a dynamic group, use a fast formula of type Payroll Relationship Group. The formula contains thecriteria to establish the payroll relationships and assignments included in the group. Then, you can individuallyselect additional payroll relationships and assignments to include in or exclude from the group.

Work Relationship GroupsYou can use Work relationship groups to limit the persons processed for human resources and reporting. For example, youcan use work relationship groups in your user-defined extracts. You can define the group to be either static or dynamic.

• In a static group, select the work relationships and assignments to include in or exclude from the group.

• In a dynamic group, use a fast formula of type Work Relationship Group. This formula contains the criteria toestablish the work relationships and assignments included in the group. Then, you can individually select additionalwork relationships and assignments to include in or exclude from the group.

Related Topics

• Example of Writing a Fast Formula Using Expression Editor



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• Restrict Payroll Processing


Chapter 4Understanding Geographies, Address Styles, and Country

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4 Understanding Geographies, AddressStyles, and Country Extensions

Implementing Global PayrollTo implement payroll, you must first understand payroll feature choices and concepts. You can then plan your payrollimplementation using the Oracle Functional Setup Manager. Functional Setup Manager enables rapid and efficient planning,configuration, implementation, deployment, and ongoing maintenance of the application through administration.

Payroll Feature ChoicesAs part of feature choices for payroll processing you:

• Select the correct country extension setting for each of your countries and territories on the Manage Featuresby Country or Territory page. The country extension setting ensures that certain payroll-related features, such aselement templates, work correctly in your implementation.

• Select the Payroll Costing Options to cost your payroll and the appropriate subledger accounting rules.

• Select the appropriate precision for the currency of each country or territory where you are processing payroll.

• Set the currency of each country or territory where you are sending payroll data to a third-party payroll provider.However, don't select that country or territory as a feature choice. Select the Payroll Interface extension on theManage Features by Country or Territory page.

Geography StructuresThis topic describes geography structures and the tasks you can perform using geography structures.

A geography structure is a hierarchical grouping of geography types for a country. The following table describes thegeography structure for the United States.

Level Geography Type

1

State

2

County

3

City

4

Postal Code



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You can use the geography structure to relate geography types for a country and define geography types for a country.

Relate Geography Types for a CountryYou can determine how a country's geographies are hierarchically related by creating the hierarchy of the geography typesin the geography structure. When you define a country's structure, the geography type Country is implicitly at the highestlevel of the geography structure with level as 1. The subsequent geography types that you add after country are numbered insequence.

You must add a geography type as a level in the country structure before you can define a geography for that geographytype in a country. For example, before defining the state of California, the State geography type must be added to the UnitedStates country structure. To quickly create country structure, you can copy a structure from another country and modify thegeography types for the country.

Define Geography Types for a CountryYou can use any of the master reference geography types to create your geography structure. If required, you can create ageography type, before adding it to the country structure. Each geography type is added at a lower level to the current lowestlevel.

Note: You cannot delete geography types that have associated geography data. You can only delete the lowestlevel geography type of the country structure.

You can use a geography type that you create within the country structure for other country structures as well.

Geography ValidationsGeography validation determines the geography mapping and validation for a country's address styles, as well as the overallgeography validation control for a country.

The No Styles Format address style format is the default address style format for a country. By defining the mapping andvalidation for this format you will ensure that validations can be performed for any address in the country. After the No StylesFormat is defined you can set up additional mapping for specific address styles.

For each address style format, you can define the following:

• Map to attribute

• Enable list of values

• Tax validation

• Geography validation

• Geography validation control

Attribute MappingFor every address style format, you can map each geography type to an address attribute. For example, you can mapthe State geography type to the State address attribute for the United States, or map the State geography type to theCounty address attribute for the United Kingdom. The geography types that appear are based on how the country structureis defined. The list of address attributes that appear are based on address formats delivered with the application, or yourcustomer defined address formats.



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Note: You only need to map geography types that you want to use for geography or tax validation purposes.

Enable List of ValuesOnce a geography type is mapped to an attribute, then you can specify whether the geography type will appear in a list ofvalues during address entry in user interfaces. It is very important to review carefully if you want to enable a list of values. Youshould only enable a list of values if you have sufficient geography data imported or created for that geography. If the setupfor master geography data is incomplete, then the geography data is either not imported or created. As a result, the list ofvalues for the address attribute does not list any geography data.

Once you have enabled a list of values for an address attribute, you can only select the geography data available for thegeography type. This means that if a specific geography value is not available in the geography hierarchy, you can't create anaddress with a different geography value.

Tax ValidationYou can also specify whether a geography type will be included in tax validation. For example, for the United States NorthAmerica address style format you specify that County, State, and City are used for tax validation. This will mean that when atransaction involves an address with the North America address style, the address must have the correct county, state, andcity combination based on the geography hierarchy data, to be considered valid for tax calculation.

Geography ValidationYou must set up geography validation for those geography elements that you plan to use in your sales territories. Setting upvalidation also helps users fill in missing address information, and validate addresses during entry. For example, you can haveusers select states or other address elements from lists to ensure accuracy during entry, and you can have the application fillin missing values. For example, when the user enters a Postal Code, the application can retrieve the city and state.

You can specify whether a geography type will be included in geography validation. For example, when the user enters aUnited States address using the North America address style format, the address must have the correct country, state, andpostal code combination based on geography hierarchy data to be considered geographically valid.

If an address element is mapped to a geography type, but not selected for geography validation usage, then during addressentry suggested values will be provided for the address element, but the address element will not be validated.

You need to verify that the default mapping between Geography Type and Map to Attribute is valid in the GeographyMapping and Validation region and update it if required when you define geography validation. Oracle recommends that youuse the following valid mapping for the countries that GBG | Loqate supports:

Country Name Country Code Geography Type Map to Attribute

Andorra

AD

• Country• Parroqia• Settlement• Postal Code

• Country• State• City• Postal code

Angola

AO

• Country• Provincia• Municipio• Comuna• Localidad

• Country• Province• County• City



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• Additional addressattribute 2

Argentina

AR

• Country• Province• Department• Municipality• Postal Code

• Country• Province• County• City• Postal code

Australia

AU

• Country• State• City• Postal Code


Austria

AT

• Country• Bundensland• Bezirk• Gemeinde• Postal Code

• Country• State• County• City• Postal code

Belgium

BE

• Country• Gewest• Provincie• Gemeente• Postal Code

• Country• Additional address

attribute 1• Province• City• Postal code

Bolivia

BO

• Country• Departmento• Provincia• Canton


attribute 1• Province• City

Bosnia and Herzegovina

BA

• Country• District• Kanton• Opcine• Nasalje• Postal Code


attribute 1• Province• County• City• Postal code

Brazil

BR



Bulgaria

BG

• Country• Oblast• Obshhina• Settlement• Postal Code



Canada

CA

• Country• Province• City

• Country• Province• City



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• Postal Code • Postal code

Cayman Islands

KY

• Country• Island• District• Postal Code


Chile

CL

• Country• Region• Provincia• Kommune• Postal Code



China

CN

• Country• Province• City• Town• Village• Postal Code

• Country• Province• City• Additional address

attribute 2• Additional address

attribute 3• Postal code

Croatia

HR

• Country• Zupanije• Grad• Postal Code

• Country• Province• City• Postal code

Cuba

CU

• Country• Provincia• Municipio• City• Postal Code


Cyprus

CY

• Country• Periochi• Dimos• Postal Code


Czech Republic

CZ

• Country• Kraj• Okres• Obec• Postal Code


Denmark

DK

• Country• Amt• Settlement• Postal Code


Dominican Republic

DO

• Country• Provincia• Municipio• Town

• Country• Province• County• City



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Ecuador

EC

• Country• Province• Canton• City• Postal Code


Estonia

EE

• Country• Maakond• Vald• Postal Code


Finland

FI

• Country• Laani• Kunta• Postal Code


France

FR

• Country• Region• Department• Commune• Postal Code


attribute 1• State• City• Postal code

Germany

DE

• Country• Bundesland• Kreis• Gemeinde• Postal Code


Great Britain

GB

• Country• County• Township• Postal Code


Greece

GR

• Country• Periferia• Nomi• Dimotika• Postal Code


Guadalupe

GP

• Country• Commune• Postal Code

• Country• City• Postal code

Guam

GU

• Country• State• County• Municipality• Village• Postal Code

• Country• State• County• City• Additional address


Guernsey GG • Country • Country



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• City• Parishes• Villages• Postal Code

• City• Additional address


attribute 3• Postal Code

Hungary

HU

• Country• Megye• Jaras• Telepules• Settlement• Postal Code



Iceland

IS

• Country• Jaras• Telepules• Settlement• Postal Code


India

IN



Indonesia

ID

• Country• Province• Regency• City• Postal Code


Ireland

IE

• Country• Province• Post County• Post Town• Locality


attribute 1• State• City• Additional address

attribute 2

Isles of Man

IM

• Country• Locality• Settlement• Postal Code

• Country• City• Additional address


Israel

IL

• Country• District• Subdistrict• City• Postal Code


Italy

IT

• Country• Regione• Provincia


attribute 1• Province



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• Comune• Postal code

• City• Postal code

Jamaica

JM

• Country• Parish• Settlement

• Country• State• City

Japan

JP

• Country• Prefecture• City• Postal Code


Jordan

JO

• Country• Muhafazat• Liwa• Tajma• Postal Code


Kenya

KE

• Country• County• Division• Settlement

• Country• State• City• Additional address

attribute 2

Latvia

LV

• Country• Rajons• Pilseta• Postal Code


Liechtenstein

LI

• Country• Wahlkreis• Gemeinde• District• Postal Code



Lithuania

LT

• Country• County• Municipality• Ward• Postal Code


Luxembourg

LU

• Country• District• Canton• Commune• Settlement• Postal Code


attribute 1• State• County• City• Postal code

Malaysia

MY

• Country• State• District• Subdistrict

• Country• State• County• City



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Malta

MT

• Country• Region• Local Council• Postal Code


Martinique

MQ



Mexico

MX

• Country• State• Municipality• Locality• Postal Code

• Country• State• County• Additional address


Netherlands

NL

• Country• Province• Gemeente• Settlement• Postal Code


New Zealand

NZ

• Country• Region• Town• Postal Code


Norway

NO

• Country• Fylke• Kommune• Postal Code


Oman

OM

• Country• Muhafazah• District• City

• Country• State• County• City

Peru

PE

• Country• Region• Provincia• Distrito• Postal Code


Poland

PL

• Country• Wojewodztwo• Powiat• Gmina• Postal Code


Portugal

PT

• Country• Distrito

• Country• Province



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• Concelho• Settlement• Postal Code

• County• City• Postal code

Puerto Rico

PR

• Country• Commonwealth• Municipio• Barrio• Postal Code


Qatar

QA

• Country• Municipality• Zone

• Country• State• City

Reunion Island

RE

• Country• Region• Department• Commune• Settlement• Postal Code

• Country• State• County• City• Additional address


Romania

RO

• Country• Regiune• Judet• Settlement• Comuna• Postal Code



Russia

RU

• Country• Federal_District• Respublik• Kray• Oblast• Postal Code


attribute 1• State• County• City• Postal code

San Marino

SM

• Country• Comune• Postal Code

• Country• State• Postal code

Singapore

SG

• Country• Region• District• Postal Code


Slovakia

SK

• Country• Kraj• Okres• Obec• Postal Code


Slovenia

SI

• Country• Regija

• Country



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• Upravna Enota• Obcina• Settlement• Postal Code

• Additional addressattribute 1

• Province• County• City• Postal code

South Africa

ZA

• Country• Province• District

Municipality• Local Municipality• Postal Code


South Korea

KR

• Country• Jibang• Siti• Dosi• Ma Eul• Postal Code




Spain

ES




Sri Lanka

LK

• Country• Province• District• Divisional

Secretariat• Postal Code


Swaziland

SZ

• Country• District• Inkhundla• Town• Postal Code


Sweden

SE

• Country• Lan• Settlement• Postal Code


Switzerland

CH

• Country• Kanton• Bezirk• Gemeinde• Postal Code


Taiwan

TW

• Country • Country



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• County• Town• Postal Code

• State• City• Postal code

Thailand

TH

• Country• Region• Changwat• Amphoe• Postal Code



Tunisia

TN

• Country• Governorate• Delegation• Sector• Postal Code


attribute 2• Postal Code

Turkey

TR

• Country• Sehir• Ilce• Kasaba• Postal Code


United Arab Emirates

AE

• Country• Emirate• City• Area


attribute 2

United States

US

• Country• State• County• City• Postal Code


Uruguay

UY

• Country• Departamento• City• Postal Code


Vatican City

VA

• Country• Municipal• Settlement• Postal Code


Vietnam

VN

• Country• Region• Tihn• Quan• Thank Pho• Postal Code





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Note: For either the tax or geography validation, do not skip more than one consecutive level unless you arecertain that the selected geography types can uniquely identify geographies. For example, the United Statescountry structure is: State, County, City, and Postal Code, and you want to select just State and Postal Codefor geography or tax validation. However, for the combination of California and 94065, the city can be eitherRedwood Shores or Redwood City. In this case, you should also select at least the City geography type forgeography or tax validation.

Geography Validation ControlYou can select the geography validation level for a country. Validation will check if the entered address maps to thegeography hierarchy data available for the country, and the geography validation control determines whether you can save anaddress that did not pass validation during address entry. For example, if the validation level is Error, then an address cannotbe saved if the values do not match the geography hierarchy data.

These are the geography validation levels you can choose:

• Error - only completely valid addresses can be saved, with all mandatory address elements entered.

• No Validation - all addresses can be saved including incomplete and invalid addresses.

Regardless of the result of validation, the validation process will try to map any address attribute to a geography of thecountry, and store any mapping it could establish based on the available data. This is called Geography Name Referencingand it is executed as part of validation. The result of this referencing is used in several business processes in the applicationto map an address to a specific geography or zone.

The Geography Dimension value in territories is derived from sell-to addresses of sales accounts. To use geographydimensions in territories, you must validate the geography elements in the addresses, such as state, city, and postal code.You can validate the address by enabling geography validation for each country using the Manage Geographies task. Performthe following in the Manage Geographies task:

• Enable at least one level in the geography hierarchy for geography validation.

• Enable geography validation for all geography levels that you intend to use for territory definition for each country.

• If needed, enable a list of values containing specific geography elements. This will help users search and selectappropriate geography values during addresses entry and eliminate all possibilities of wrong address entry.

You can set geography validation control to Error in the Manage Geography Validation page. This ensures that users can onlyuse valid geography elements in addresses.

Note: If you have already created addresses before setting up geography validation for a country, you mustenable geography validation and then execute the Run Maintain Geography Name Referencing task for thatcountry. This validates all your geography elements.

Changing Address Style and Address Validation SettingsUse the Manage Features by Country or Territory task to control address style and level of address validation for the countriesor territories you configure. The values you can set depend on the combination of the country or territory and the selectedcountry extension. For example, for Canada, you can change the address style from its default value only when you set thecountry extension to Human Resources or None. You can't change the address style from its default value when you set thecountry extension to Payroll or Payroll Interface.



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Address StylesThe address style you select determines which address attributes are available and maintained in the application. Thecombination of address style and address validation determines the level of validation.

Depending on the country or territory and the country extension you select, you have one or both of the following addressstyle options. Each address style provides its own validation:

• Postal Address

This address style provides the fundamental set of address attributes for a country or territory. In some cases, thisstyle adds supplemental attributes. For instance this address style might include general address attributes that arenot relevant, such as State or Postal Code.

• Supplemental Taxation and Reporting Address

Defined for country extensions, this address style can add validation or attribute changes in the application. Forexample, this style may add specific validation of postal codes, such as requiring a specific number of characters in aspecific sequence.

Use the Manage Features by Country or Territory task to see what is delivered for your country. Each country has a defaultaddress style and the choice of the country extension determines whether you can change the default address style.

Validate Based on Country ExtensionFor example, for Canada, the default is Supplemental Taxation and Reporting Address. However, the address style andaddress validation depends on the country extension, as shown in the following table.

Extension Style Enforced Validation Enforced

Human Resources

No

No

Payroll Interface

Yes

No

Payroll

Yes

Yes

For Canada, if you have chosen to install Human Resources, the value for the Address Style can be modified to either format.If you have chosen to install either Payroll Interface or Payroll, the value for the Address Style can't be modified. It must be setto Supplemental Taxation and Reporting Address. Validations are implemented to enforce that requirement.

Change Address StylesFor most of the predefined countries and territories, the application enforces the address style, preventing you from makingchanges. However, when the address style is not enforced, such as a customer-configured legislation, changing addressstyles can affect validation rules. This might lead to address data integrity and validation issues.

For example, for Canada, if you initially implement Human Resources using the Postal Address style and then later changethe country extension to Payroll, you must also change the address style to Supplemental Taxation and Reporting Address.As a result, you must update your existing address data to resolve validation errors.



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Note: The Supplemental Taxation and Reporting Address style, once selected, impacts both the Person andHCM Locations address styles. Ensure to test any changes you make to address style or validation for a countryor territory before you implement them in a production environment. If you provide data to a third party, such asa payroll or benefit provider, statutory recipients, or financial institutions, you must test the changes. Changes tovalidation or address styles may result in missing data or unrecognized data.

Tip: You can use the Manage Address Formats task to review and configure how addresses appear in theapplication.

Disable Address ValidationDisabling address validation disables any country-specific programmatic validation rules created for a specific country orterritory. You can disable address validation on the Manage Features by Country or Territory page.

A country or territory might have rules defined using the Manage Geographies task for validating address structure, format,or values. Disabling address validation does not have any impact on the validations you have set up on the ManageGeographies page.

For some countries, the application prevents you from disabling the programmatic validation. For other countries andterritories, when you disable address validation, any existing validation rules for the selected address style, remains in place.

Note: For Canada, when Payroll is the selected country extension, you cannot disable the address validation.

For example, suppose you have chosen Human Resources with address validation enabled. During data conversion, youwant to temporarily bypass address validation rules to load a batch of worker data. You can achieve this by deselecting theAddress Validation check box before loading your data. After loading the batch, if the address validation remains disabled,any new address data you enter later, could be potentially invalid. Errors may occur in subsequent processes and reports. Asa result, you must re-enable address validation and update your existing address data to resolve validation errors.

Related Topics

• Manage Geography Structures, Hierarchies, and Validation

Country Extensions

Selecting Country Extensions: Critical ChoicesSelect the correct country extension setting for each of your countries and territories on the Manage Features by Country orTerritory page. The country extension setting ensures that certain payroll-related features, such as element templates, workcorrectly in your implementation. By default, each country's extension is set to Human Resources or None, which means nopayroll product is selected. If you plan to use payroll or any predefined payroll interface extracts for a country or territory, youmust set its country extension to the appropriate payroll setting.

The options available for selection for some countries or territories may be restricted. The full list is as follows:

• Payroll

• Payroll Interface

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• Human Resources or None

Setting the country extension to Payroll ensures that all payroll features function correctly. The other product settings youselect control the functions of payroll-related features when you aren't using Global Payroll. The following sections explain theavailable three options.

PayrollSetting the country extension to Payroll has the following implications:

• When creating elements, the element templates generate formulas and other associated items that are required forcosting or payment processing in Global Payroll.

• The new-hire process includes country-specific features, such as automatic generation of calculation cards forstatutory deductions and validation of address formats.

• Payroll definitions require associated organization payment methods. You must select payment methods that includea payment source.

• Defining payment sources requires source banks in Oracle Fusion Financials.

Payroll InterfaceSetting the country extension to Payroll Interface has the following effects:

• The element templates for creating regular and supplemental earnings elements generate associated objects, suchas input values, formulas, and balances. These objects are required for including employee data in the CalculateGross Earnings process.

For all other elements, the simplified element templates create only the element and no associated objects.

• The new hire process includes country-specific validation.

• Validations on payroll objects are less restrictive to support sending employee bank information as follows:

◦ No requirement for payment sources in organization payment methods

◦ No dependency on source banks in Financials

Human Resources or NoneSetting the country extension to Human Resources or None has the following effects:

• The element templates for creating standard earnings, supplemental earnings, direct payments, and taxable benefitselements with flat amount calculation rule generates the element definition and three input values, such as amount,periodicity and full time equivalent. This template for percentage calculation rule generates percentage input valueand factor input value for factor calculation rule. It does not generate any other objects, such as fast formulas andbalances.

• The element templates for creating the other elements generates only the elements and not the associated objects,such as input values, formulas, or balances.

You can configure these elements to meet your specific business requirements, such as adding input values andformulas to a compensation element.

• Certain countries or territories have additional country-specific validation.

• Validations on payroll objects are less restrictive, as with the Payroll Interface setting.

Related Topics

• Setting Up Reconciliation for Payments



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• Payroll Legislative Data

Select Country ExtensionsThis example demonstrates how to configure payroll-related features for countries and territories in an enterprise.

The Vision enterprise has employees in several countries with different payroll arrangements:

• In the United States and United Kingdom, the enterprise pays employees using Oracle Fusion Global Payroll.

• In France, the enterprise extracts and sends payroll-related data to third-party payroll provider using Payroll Interfaceextract definitions.

• In China, the enterprise stores only HR data in Oracle Fusion Applications and doesn't require any data for payrollpurposes.

The following table summarizes the key decisions to consider while deciding on the product usage for a country.

Decisions to Consider In This Example

Do your plans include processing payrolls within Oracle Fusion for anycountry?

Yes, using Global Payroll in the US and UK

Do your plans include extracting or transferring payroll-related data toa third-party provider for any country?

Yes, using Payroll Interface extracts in France

Do your plans include processing only HR details?

Yes, using Global HR in China

Setting the Extension1. In the Setup and Maintenance work area, go to the following:

◦ Offering: Workforce Deployment

◦ Functional Area: Payroll

◦ Task: Manage Features by Country or Territory

2. Click Go to Task.3. In the Selected Extension list, select the country extension for the countries as shown in this table.

The following table lists the country names and the product usage that you can select for this scenario.

Country Extension

United States

Payroll

United Kingdom

Payroll

France

Payroll Interface

China

Human Resources or None

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4. Click Save, and then click Done.


Chapter 5Understanding Prerequisite Payroll Setup Tasks

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5 Understanding Prerequisite Payroll SetupTasks

Prerequisite Tasks for Payroll SetupThe Define Payroll task list in the Setup and Maintenance work area contains most of the setup tasks required for payrollprocessing. However, first you must complete the required common application configuration tasks. You may havealready done some of these tasks because other HCM applications require them. Revisit tasks to address payroll-specificrequirements, such as creating tax reporting units.

Perform the prerequisite tasks in the following task lists within Define Common Applications Configuration for Human CapitalManagement:

• Define Features by Country or Territory

• Define Geographies for HCM

• Define Enterprise Structures for HCM

Define Geographies for HCMVerify predefined geographies, and define any additionally required local geographies.

For further information, see the following topics in the Help Portal:

• Geography Structures: Explained

• Geography Validation: Explained

Define Enterprise Structures for HCMComplete tasks in the task lists shown in the following table.

Task List Action

Define Legal Jurisdictions andAuthorities for HCM

• Create a legal jurisdiction if not already created or predefined for your country or territory.• Create a legal authority for each government body you interact with.• Create addresses for legal entities and legal authorities.

Define Legal Entities for HCM

• Create a legislative data group for each country or territory you operate in, to partition yourpayroll data.

• Create at least one legal entity designated as a payroll statutory unit (PSU) for each legislativedata group.

• Associate each PSU with a legislative data group.



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Task List Action

• Create calculation cards for statutory deductions for each PSU, if supported for your countryor territory.

Define Legal Reporting Units for HCM

• Create any additional legal reporting units that you need under a PSU and designate them astax reporting units (TRUs).

• Define the TRUs as reporting establishments as needed.• Optionally, create calculation cards for statutory deductions for each TRU, if supported for

your country or territory.

Define Business Units for HCM

Create business units that you can use to perform one or more business functions.

Define Chart of Accounts for EnterpriseStructures

Create business units that you can use to perform one or more business functions.

Define Accounting Configurations forHCM

Create charts of accounts, ledgers, and accounting calendars. When you create a bank for apayment source, you must select a legal entity that's assigned to a ledger for the associatedlegislative data group. Payroll costing also requires these financial components.

Define Features by Country or TerritoryReview and update the selected features for countries and territories you operate in. These settings control the availability ofpayroll-related features, such as element templates, and address style and address validation rules used in processes andreports.

Related Topics

• How Legal Employers Work with Payroll Statutory Units and Tax Reporting Units

• Legislative Data Groups

• How Country Extensions are Selected

Payroll Setup Tasks for FinancialsPayroll integrates with Oracle Fusion Financials. You must set up components in Financials, such as charts of accounts andledgers, before you can set up banks to process payments, associate a ledger to a payroll definition, and run processes todistribute costing results.

Complete the following setup tasks in the Setup and Maintenance work area for the chart of accounts and ledgers. Theapplication implementation consultant job role can perform the following tasks.

Chart of Account Setup TasksComplete the following tasks to set up your chart of accounts information. Later, you associate the chart of accounts to aledger.



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Task Action

Manage Chart of Accounts Value Sets

Create new or review existing value sets, which you will associate with a key flexfield segment.

Manage Chart of Accounts Structures

Create account structures that specify the segments to include, their order, and the value sets thatwill validate the data entered in the segments. Oracle Fusion General Ledger predefines the Accounting key flexfield.

Manage Chart of Accounts StructureInstances

Create account structure instances, which you will use to record transactions and maintain accountbalances.

Manage Chart of Accounts Value SetValues

Create groups of values, which you will assign to a key flexfield segment.

Manage Account Hierarchies

Search, create, and edit hierarchical groupings of accounts.

Manage Accounting Calendars

Set up accounting calendar period details. Determine the total number, frequency, and duration ofthe accounting periods.

Manage Account Combinations

1. Create account combinations if the structure instance of your chart of accounts flexfielddoesn't allow dynamically created account combinations

2. Create accounts for each account combination used in payroll. As a best practice, use thesame account numbers for your payroll and general ledger accounts.

3. If you reconcile payments in Oracle Fusion Cash Management, create an accountcombination for reconciliation differences.

Ledger Setup TasksYou perform the following tasks as part of the accounting configuration setup for Global Payroll.

Task Action

Manage Primary Ledgers

Create a ledger with a chart of accounts, accounting calendar, currency and subledger accountingmethod.

Note: If you are creating bank information, you must create a primary ledger.

Assign Legal Entities

Add the legal entities that use the ledger. The Manage Legal Entity HCM Information task associates the payroll statutory units for legal entitiesto the legislative data group.

Specify Ledger Options

1. Complete all the fields for the General Information and Accounting Calendar, and SubledgerAccounting sections.

2. In the Period Close section, select the Retained Earnings Account you will use for payroll.3. In the Journal Processing Intercompany subsection, select the option to launch AutoReverse

after the open period.

Assign Balancing Segment Values toLegal Entities

Assign specific balancing segment values to each legal entity before assigning values to the ledgers.



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Task Action

By specifying this information, you can more easily identify legal entities during transactionprocessing and reporting

Assign Balancing Segment Values toLedger

Optionally, assign specific primary balancing segment values to the primary and secondary ledgersto represent transactions for nonlegal entities, such as adjustments.

Manage Reporting Currencies

Review and update reporting currencies. Reporting currencies maintain and record subledger and general ledger journal entries in additionalcurrencies.

Review and Submit AccountingConfiguration

Submit your configuration.

Open First Period

Open the first period when you are ready to process transactions for the ledger. After you open the first period, use the Manage Accounting Periods in General Ledger to open andclose periods, and to specify the target period that concludes the series of calendar periods.

Related Topics

• How Payroll Costing Components Work Together

• Primary Ledgers, Secondary Ledgers, and Reporting Currencies

• How to Payroll Setup Tasks for Subledger Accounting

• Assign Legal Entities and Balancing Segments

• Chart of Accounts Structures and Instances

Payroll Cost Allocation Key Flexfield SetupThe cost allocation key flexfield creates a structure for financial accounting of your payroll costs. The flexfield captures theaccount codes you use to create accounting entries, and to report and track your labor costs. When planning how to create akey flexfield structure, consider the following choices:

• Structure of the cost allocation key flexfield

• Value sets for the segments

• Cost hierarchy levels enabled to populate each cost account segment

• Required and optional segments

• Segments required for the offset account

• Number of structure instances of the cost allocation key flexfield

Note: After you create your flexfield, you can generate database items for use in your formulas and extracts bysubmitting the Generate Flexfield Database Items process from the Payroll Checklist or Payroll Administrationwork area.

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Structure of the Cost Allocation Key FlexfieldDecide what structure to use for the cost allocation key flexfield. You use the Manage Cost Allocation Key Flexfield task in theSetup and Maintenance work area.

The structure of the flexfield defines the segments to include, their order, and the value sets to validate the data entered in thesegments. Using the predefined Cost Allocation key flexfield to create the structure, you specify:

• Segment labels, the row headings that correspond to the cost hierarchy levels

• Column headings, which correspond to the segment of your account structure

Tip: As a best practice, create a structure based on the structure of the Accounting flexfield used for thechart of accounts that receives the payroll costing entries. Use a similar sequence of segments and namingconventions to facilitate setup.

The structure you deploy generates a reference table on the costing setup pages. The following figure illustrates how thecolumn heading and segment label make the company account information available for entry on the Manage Costing ofPayroll page.

Cost AllocationKey Flexfield

Segment Labels (Example:

Payroll)

Manage Costing of PayrollSegments Available for Entry

Column Headings (Example: Company)

Controls Payroll

Company

Element

Department

Cost Center

The following table lists questions to consider before you create the cost allocation key flexfield structure.

Decision Description

How many cost allocation key flexfieldsegments does your Accounting flexfieldinclude?

You must create a segment for each corresponding segment of the Accounting flexfield.

Do you need to reserve segments forfuture use?

You can't update the flexfield structure. You can create segments for later use, such as new lines ofbusiness, and display them as needed.

Do you capture context sensitiveinformation for legislative purposes?

Create additional segments to capture context sensitive costing, such as separate liability accountsmaintained for each state and state tax.

Do you capture information used byother applications?

Create additional segments, for example, to record the breakdown of costs of a project for reportingpurposes.



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Decision Description

Value Sets for the SegmentsDecide whether to use existing value sets or to create new value sets.

You associate each segment to a value set created using the Manage Payroll Costing Value Sets task in the Setup andMaintenance work area. For example, you might reuse an existing value set that you defined for your accounting flexfield, orcreate a subset of those values, which only apply to payroll.

Tip: Consider creating a single value when several accounts use the same value. For example, you might use avalue set with a single value of zeros as a placeholder for account segments, such as future use segments.

The following figure shows an additional segment added to the structure that doesn't have a corresponding segment in theAccounting flexfield, and the value sets associated to each segment.

Key Flexfield and Value Sets

Key Flexfield Segments

Value Sets

Company Account Cost Center Product

102 00251 452 5841. ..

Delimiter

Project(extra

segment)

000.

Cost Hierarchy LevelsConsider which level of the cost hierarchy is the primary source of values for that segment and which levels should receiveoverrides. These decisions control which cost account segments the application displays on the costing setup pages.

The following table includes examples of the segment labels you might specify for costing.

Segment Example

Payroll

Select Payroll for segments that seldom change for the people assigned to the payroll, such ascompany, line of business, and future use segments.

Tip: To report costing by business unit, set up payrolls for persons in a single business unit.Specify a segment at the payroll level to record the account information for the business unit.

Element Eligibility

Select Element Eligibility for natural accounts.



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Segment Example

You also use this level for cost center segments needed for balance sheet accounts, such asdeduction elements which are usually created at the payroll relationship level.

Department

Select Department for cost centers.

Job or Position

Select Job to compare and roll-up costs based upon job category. Select Position if you are using position management at your enterprise, to better track the cost ofturnover to the enterprise. Costing at these levels requires higher maintenance to set up and manage the costing in diverseand complex organizations.

Person

Select Person to cost at the payroll relationship and assignment level, and for elements at each ofthese levels. You might select Person to enable allocation of wages when costs are shared by several costcenters. You might need to override the activity or natural account segment that is usually enabledat the element level.

Element Entry

Select Element Entry to override all other levels, with one exception. Costing at the element entrylevel is overridden by the segments defined for the Priority account for that element. You might select the segment for cost center at the element entry level to cover situations where aperson works at another cost center for a payroll period.

Required and Optional SegmentsDetermine which segments to make required based on whether you want to place in a suspense account a costing resultwith a blank value for a segment. When you set up costing, if you don't specify a value for a cost account segment on anylevel of the costing hierarchy, the resulting calculation is determined by two factors:

• Segment is required or optional

• Suspense account is defined

If you define a segment as:

• Optional, regardless of whether you define a suspense account, the costing result displays a blank (null) value in thesegment

• Required, and the suspense account is defined, the costing result is placed in a suspense account

• Required, and the suspense account is not defined, the calculation displays an error, and the person's results arenot costed

Segments Required for the Offset AccountDecide which segments of the offset account require costing.

The offset account balances the cost account. It uses the segments of the cost account unless you specify a different valuefor the corresponding segment. For example, if the only difference between your cost and offset accounts is the naturalaccount segment, for the element eligibility segment label, you would select the natural account for the offset account.



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Number of Structure InstancesYou create structure instances of your cost allocation key flexfield that you then associate to legislative data groups.Structure instances share the same set, arrangement, and properties of the cost allocation key flexfield structure. If alegislative data group requires different value sets for the flexfield segments, create a separate instance for that legislative datagroup.

Related Topics

• Payroll Setup Tasks for Costing Accounts

• Costing of Elements Options

• How Payroll Costing Components Work Together

• Cost Hierarchy

• Overview of Generating Flexfield Database Items

Setting Up Reconciliation for PaymentsOracle Fusion Global Payroll integrates with Oracle Fusion Cash Management and Oracle Fusion General Ledger. Thisintegration facilitates the setup of banks, branches, and bank accounts, and the reconciliation of bank statements withpayment transactions.

An administrator or implementor with the appropriate privileges performs the tasks shown in the following table in the Setupand Maintenance work area:

Application Setup Steps Task

General Ledger

Create an account combination for thereconciliation differences account.

• Manage Account Combinations

Cash Management

Set up transaction codes that map to thepayment method transaction codes used inpayroll.

• Manage Cash Transaction TypeMapping

• Manage Bank Statement TransactionCodes

Cash Management

Create reconciliation rules.

• Manage Bank StatementReconciliation Tolerance Rules

• Manage Bank StatementReconciliation Matching Rules

• Manage Bank StatementReconciliation Rule Sets

Payroll

Create liability, cash clearing, and cashaccounts for your payment sources. Specify the option Transfer to GeneralLedger.

• Manage Costing of Payment Sources

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This topic covers the steps for setting up the following objects:

• Reconciliation differences account

• Payroll transaction codes

• Reconciliation rules

• Payroll accounts

Setting Up Reconciliation Differences AccountIf you reconcile payment costs before posting the costing results to Oracle Fusion General Ledger, set up a reconciliationdifferences account in General Ledger using the Manage Account Combinations task. The reconciliation differences accountsin Cash Management records discrepancies between the bank statement and the transferred payment files, such as over andunder payments.

Setting Up Payroll Transactions CodesIf you cost your payments, set up and map transaction codes in Cash Management for the organization payment methods.

Task Action

Manage Bank Statement TransactionCodes

1. Review the transaction and statement codes that your enterprise currently uses2. Create transaction codes for the transaction types that support your organization payment

methods

Manage Cash Transaction TypeMapping

1. Map transaction types to payment types used for the organization payment methods thatsupport costing of payments.

2. Identify the organization payment methods for payroll accounts, such as payroll liability, cash,and cash clearing accounts.

Setting Up Reconciliation RulesPayroll processes transfer your payment entries to Cash Management for manual or automatic reconciliation with bankstatements, and cost the unreconciled and reconciled payments to the appropriate account, such as the cash clearing andcash accounts.

If you reconcile transactions automatically, in Cash Management complete the tasks listed in the following table.

Task Action

Manage Bank Statement ReconciliationTolerance Rules

Create tolerance rules based on date, amount, or percentage that prevent or warn you whenreconciliation exceeds a defined tolerance.

Manage Bank Statement ReconciliationMatching Rules

Define bank statement automatic reconciliation matching rules.

Manage Bank Statement ReconciliationRule Sets

Assign a group of matching rules and tolerance rules to a bank account for reconciling bankstatement lines with transactions.

Manage Bank Accounts

Specify the Reconciliation Differences account you set up in Oracle Fusion General Ledger..



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Setting Up Payroll AccountsCreate a liability and cash account. Create a cash clearing account to track payments such as checks, where a delay existsbetween the date the payment is issued and the date it clears. Use the Manage Costing of Payments task in the Setup andMaintenance work area or in the Accounting Distribution work area of Oracle Fusion Global Payroll.

Note: When you set up the accounts, it's best practice to enter the same account information that you use forthe cash and cash clearing account that you created in General Ledger.

Related Topics

• Considerations When You Create Accounts

• How to Payroll Setup Tasks for Subledger Accounting

• How to Reconcile Payroll Payments

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Chapter 6Setting Up Payroll Fundamentals

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6 Setting Up Payroll Fundamentals

Payroll Business Definitions

Payroll Business Definitions: ExplainedAn integral part of the payroll setup is defining payroll business definitions. Use the Define Payroll Business Definitions task inthe Define Payroll tasks list to create lookups, value sets, and descriptive flexfields that you need to support payroll.

LookupsLookups are lists of values in applications. Use lookups to provide validation or a list of values for a user input field in a userinterface. You define a list of values as a lookup type consisting of a set of lookup codes, each code's translated meaning,and optionally a tag. The tags control which countries can have access to the lookup codes being defined. End users see thelist of translated meanings as the available values for an object.

The following table contains an example of a lookup type for marital status (MAR_STATUS) that has lookup codes for users tospecify married, single, or available legal partnerships.

Lookup Code Meaning Tag

M

Married

Not applicable

S

Single

Not applicable

R

Registered Partner

+NL

DP

Domestic Partner

-FR, AU

When managing lookups, you need to understand the following.

• Using lookups in applications

• Configurable levels

• Accessing lookups

• Enabling lookups

• The three kinds of lookups: standard, common, and set enabled

Descriptive FlexfieldsUse descriptive flexfields to add customer-defined attributes to business object entities, and define validation for them.

All the business object entities that you can use in the application are enabled for descriptive flexfields. However, configuringdescriptive flexfields is an optional task.



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Configuring descriptive flexfields involves managing the available flexfields registered with your Oracle Applications Clouddatabase and configuring their flexfield-level properties, defining and managing descriptive flexfield contexts, and configuringglobal and context-sensitive segments.

Extensible FlexfieldsExtensible flexfields are like descriptive flexfields, with some additional features.

Unlike descriptive flexfields, the columns corresponding to extensible flexfields segments are part of specific tables, separatefrom the base application table. Unlike descriptive flexfield contexts, the set of attributes in an extensible flexfield contextremains constant and doesn't differ by context value.

An extensible flexfield describes an application entity, with the run time ability to expand the database that implementationconsultants can use to define the data structure that appears in the application.

Extensible flexfields support one-to-many relationships between the entity and the modified attribute rows.

To get a list of predefined extensible flexfields, open the Setup and Maintenance work area, and use the Manage ExtensibleFlexfields task.

The following aspects are important in understanding extensible flexfields:

• Usages

• Categories

• Pages

• Security

• Protected Extensible Flexfield Data

Value SetsA value set is a group of valid values that you assign to a flexfield segment to control the values that are stored for businessobject attributes.

An end user enters a value for an attribute of a business object while using the application. The flexfield validates the valueagainst the set of valid values that you configured as a value set and assigned to the segment.

For example, you can define a required format, such as a five digit number, or a list of valid values, such as green, red, andblue.

Related Topics

• Validation Type Options for Value Sets

• How Flexfields and Value Sets Work Together

• Considerations for Managing Descriptive Flexfields

• Overview of Extensible Flexfields

• Overview of Lookups

Profile Options

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Profile Options: ExplainedUse profile options to manage user preferences and control the general function of applications. For example, you can controluser preferences involving language, date, time, currency, and other similar general settings.

You can create a profile option and also determine the level at which that profile option takes effect. You can also define theprofile values for the profile option. The profile values appear on the Manage Administrator Profile Values page when youselect the profile option.

Creating a Profile Option1. In the Setup and Maintenance work area, go to the Manage Profile Options task.2. On the page, click Actions > New.3. On the Create Profile Option page, fill all the fields with relevant details with specific attention to the following:

◦ Use the SQL Validation field to provide an SQL statement that displays the permissible profile values to beused. Using an SQL statement, you can select the values from another table and display them as a list ofvalues.

For example, to display the values Yes and No from a lookup table, you can use the following SQL statement:

select MEANING, LOOKUP_CODE from FND_LOOKUPS where LOOKUP_TYPE='YES_NO'

As a result, on the Manage Administrator Profile Values page, the profile values Yes and No are availablefor selection for that profile option.

◦ You can specify a date range to keep the profile option active during that period. Beyond the specifiedduration, the profile option automatically becomes inactive. If you no longer require the profile option, you mustmanually delete it from the Manage Profile Options page.

4. Click Save and Close.5. On the Manage Profile Options page, search for the newly created profile option and from the results, select it.6. In the Profile Option Levels section, do the following:

a. In Enabled, select the levels at which you want to enable the profile option.

Note: You can enable a profile option at multiple levels, but a higher-level profile value overrides alower-level value. Therefore, enable them only at the required levels.

b. In Updatable, select the profile level at which you want implementors to have update privileges. Leave thecheck box deselected if you don't want the implementors to modify the profile values (they appear in read-onlymode).

7. Click Save and Close.

To edit a profile option that you created, search for it and edit the necessary details.

Note: While creating and editing profile options and profile categories, you can translate the details to thepreferred languages without changing the language session of the application. To specify the translations in allthe enabled language rows, use the Translation Editor option. Once the updates are made, users can view thetranslated text for the specific details.

Related Topics• Hierarchy in Profile Levels

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• Set Profile Option Values

• Enter or Edit Translated Text

Pay Frequency

How Pay Frequency Components Work TogetherPay frequency components together provide the flexibility to implement complex time-related objects used in payrolldefinitions, payroll processes, and payroll tasks that use start and end dates. This topic explains how the following payfrequency components work together to provide payroll functionality for your organization. Each of the following componentsrequires its own setup and implementation:

• Consolidation Groups


• Time Definitions

• Run Types

Consolidation GroupsUse consolidation groups to process the results from more than one payroll run in a single action or process the resultsfor one payroll in separate actions. With consolidation groups, you produce one set of results per payment method forseveral payrolls, one set of reports, and one set of costing results. For example, you may submit a regular payroll run anda supplementary payroll run for the same payroll period. If the regular run and supplementary run both belong to the sameconsolidation group, use a single consolidation group to process all the results for the post-run processing. Optionally, youcan enter a different consolidation group for the supplementary payroll run and use it to process the post-run results for thesupplementary payroll separately from the regular payroll.

Payroll DefinitionsPayroll definitions are essential to your payroll implementation because they indicate the payment frequency and processingschedule. Payroll definitions associate employees with the payroll run through payroll relationships.

Time DefinitionsTime definitions can be static periods of unusual length based on a given static date, or they can create dates based ondynamic variables. You can specify dynamic variables for a time span, a retrieval date, or a more complex definition typeto use with a user-defined date. The application uses time definitions in many areas, including payroll periods, payrollemployment management, balance dimensions, retroactive and proration events, element start and end dates, and overtimeperiods.

Run TypesRun types control the elements and payment types to process in a payroll run. Two predefined run types, Regularand Supplemental, group the other run types and determine their processing sequence. The predefined Regular andSupplemental run types include the two component run types described in this table.

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Run Type Component Description

Process Separately Generates a separate payroll calculation for each element entry marked to process separately.

After processing separate processes:

• Includes element run results with normal payroll run results in a single payment.• Excludes element run results in regular tax calculation on the normal run, for example, to use

supplemental tax rates.

Separate Payment

Creates a separate payment for each element entry marked to pay separately.

For each of the component run types, you can specify payment methods that override the default payment methods forthe payroll definition. You can also select the element classifications processed by runs of this type, and exclude specificelements from these classifications.

Statutory and Earning PeriodsWhen you create a payroll definition, a payroll earnings calendar is generated based on the first period end date. The calendarassigns each payroll period a period name that includes the period number. In some countries, the statutory tax year doesn'tcoincide with the dates generated for the earnings calendar. These countries also use a statutory calendar with statutoryperiod numbers. The statutory calendar ensures that the payroll run uses the correct period for taxation purposes.

Statutory frequencies are defined in months and weeks, and map to the payroll definition frequencies. For example, abiweekly calendar is based on a weekly statutory calendar. A quarterly payroll calendar is based on a monthly statutorycalendar. Typically, countries that support semimonthly payroll periods don't use statutory periods.

When you submit a payroll calculation, such as a QuickPay process, you select a payroll period. The calculation uses theprocess date for the selected payroll period to identify the statutory period. The process date is the payroll run date on thepayroll definition.

If your country uses a statutory calendar, you can view period numbers, start, and end dates on the Person Process Resultspage and statement of earnings.

FAQ for Pay Frequency

When would I close a payroll period?Closing a payroll period can prevent changes to recurring entries. Payroll periods aren't like General Ledger periods. Closingpayroll periods is not necessary.



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Why can't I find my organization payment method when creatingother payroll objects?When updating an object's organization payment method, the effective start date of the organization payment methodmust be on or before the effective date of the change. For example, to create a payroll definition effective on 4/1/2012 witha default organization payment method, the organization payment method must have an effective start date on or before4/1/2012. You can only select an organization payment method that has an effective start date on or before the date you arecreating or updating the object.

Consolidation Groups

Consolidation Groups: ExplainedA consolidation group enables you to process the results of more than one payroll runs in a single action. It is a grouping ofpayroll runs within the same period for the same payroll. You can produce one set of results, one set of reports, and one setof costing groups. These are runs you make in addition to your regular payroll runs. For example, you can use a consolidationgroup to make supplemental payments to a group of employees who left the organization.

You can specify a default consolidation group for each payroll definition.

Use the Manage Consolidation Groups task in the Payroll Calculation work area to create consolidation groups.

To create a consolidation group:

1. Select the Manage Consolidation Groups task in the Payroll Calculation work area.2. On the Manage Consolidation Groups page, click Add Row.3. Enter a Name and select a Legislative Data Group. Adding the Description is optional, but it is useful to provide.4. Click Save.

Examples of Consolidation Group UsageYou create consolidation groups by selecting the Manage Consolidation Groups task from the Payroll Calculation work area.The following scenarios provide examples of how you can use consolidation groups.

Post-Run ProcessingConsolidation groups facilitate separating payroll run results for supplemental processing. For most payroll post-runprocessing, you can use the consolidation group as an input parameter. You may want the results of a supplemental payrollrun to be kept separately from those of the regular payroll process that was already performed. To use a consolidation groupto keep supplemental run results separate from the regular payroll runs:

1. Create a new consolidation group used to label the supplemental payroll run.2. Initiate the supplemental payroll run, specifying the new consolidation group as an input parameter.



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Separate Costing and PaymentYou can use multiple consolidation groups to control processing. For example, you want to process and pay a particular setof employees separately within a single payroll to keep separate records of payment and costing.

To process employees separately:

1. Create a new consolidation group to specify when running the Calculate Payroll process.2. Create payroll relationship groups that restrict the employees.

You can use rules to identify them dynamically or you can specify the employees by their payroll relationshipnumbers.

3. Run the Calculate Payroll process for each payroll relationship group separately. Specify the original consolidationgroup in the first run and the new consolidation group in the next run.

Purposes of ReportingYou can use consolidation groups for reporting purposes. For example, you may want to run the Payroll Activity Report for asubset of payrolls.

To process the report for a subset of payrolls:

1. Create a consolidation group to specify the payrolls for which you want to run the report.2. Run the Payroll Activity Report, specifying the new consolidation group.

Payroll Definitions

Payroll DefinitionsPayroll definitions contain calendar and offset information, which determines when to calculate and cost payments. Use theManage Payroll Definitions task in the Payroll Calculation work area to specify payment frequency, processing schedule, andother parameters for a particular payroll. Payroll period types, such as weekly or monthly, determine the interval at which youpay employees.

Create at least one payroll definition for each payroll period type that you use to pay employees. For example, to payemployees semimonthly, create a payroll definition using the semimonthly payroll period type, ensuring that tax calculationsand other calculations produce correct results for those employees.

Creating Payroll DefinitionsWhen you create a payroll definition, the application generates the complete payroll schedule based on the payroll periodtype, any offsets or calendar adjustments, and the number of years that you specify. Each payroll in the schedule is assigneda unique name. After you have saved a payroll definition, you can assign employees to it on the Manage Payroll Relationshipspage. A common scenario for creating a payroll definition is to replace one that is expired or end-dated.

Each payroll must belong to a consolidation group, which the application requires for processing purposes. Before you cancreate a payroll definition, the legislative data group and the consolidation group to use for it must already exist.



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Modifying Payroll DefinitionsWhen you modify a payroll definition, the application adjusts the payroll schedule based on the values you have modified. Acommon scenario for modifying an existing payroll definition is to increase the number of years and generate more payrolltime periods that configure the payroll calendar.

Note: You can configure the payroll calendar by increments of ten or fewer years.

The names of the payrolls in the payroll schedule are unique. You can edit the generated payroll names, but you must ensurethey are unique within the payroll definition.

Managing Payroll Definitions: Points to ConsiderWhen you create or modify payroll definitions, the application generates a calendar of payroll periods based on yourselections. The choices you make for the following values determine the resulting schedule of payroll periods:

• Effective start date

• First period end date

• Number of years

• Offsets

• Changes to specific dates

Effective Start DateThe effective start date is the first date that the payroll definition is available for employee data. The start date must be on orbefore the earliest date of any historical data that you want to load. For example, for a payroll starting on 01-JAN-2013 withfive years of historical payroll data to load, you set the start date of the payroll definition to 01-JAN-2008.

The effective start date does not affect the generated calendar of payroll periods. The start date for the first payroll period isbased on the first period end date.

First Period End DateThe first period end date is the end date of the first payroll period that the application generates for a payroll definition. Thefirst period end date is typically based on the date of implementation, tax year, benefits enrollments, or a particular paymentcycle. For example, if your weekly payroll work week is Saturday through Friday, and your first payment date is on 06-JAN-2012, you could use 30-DEC-2011 as your first period end date.

Number of YearsThe number of years you enter represents how many years of time periods to generate starting from the beginning of thefirst payroll period, which is determined by the first period end date. This table shows an example for a semimonthly payrolldefinition.

Effective Start Date First Period End Date Number of Years Generated Time Periods

01-JAN-2014

15-JUN-2014

5

01-JUN-2014 to 31-MAY-2018

Once you save a payroll definition, you can later only increase but not reduce its number of years because a calendar of timeperiods for the payroll was already generated.



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Note: The application generates the calendar of payroll periods in increments of ten or fewer years. Forexample, if you want a 12-year calendar of payroll periods, you first enter 10 years and submit your changes.Then you edit the payroll definition setting the number of years to 12.

OffsetsDepending on the payroll period type, you can elect for your payroll cycle events to occur on specific dates, or to have theapplication calculate dates based on offsets from period start or end dates.

This table describes the predefined payroll cycle events that you can offset.

Date Meaning

Cutoff Date

Final date that payroll information can be entered for the payroll period.

Payslip Availability Date

Date on which payees can view payslips.

Payroll Run Date

Date used by payroll calculation processes to retrieve effective values such as employee details. Theprocess date, if provided when submitting a payroll process, overrides this value. This date is predefined for your country or territory and is typically based on either date earned ordate paid that payroll calculation uses as the process date.

Date Earned

Date on which the application processes element entries for the payroll run. The date earned must be within the effective dates of the payroll period.

Date Paid

Date the employee is marked as paid. For check payments, this is the date that the check is valid forcash or deposit. For electronic funds transfer (EFT) payments, it is the transfer date.

Planned Submission Date

Date to inform the payroll administrator or payroll manager on the planned date to submit the payrollrun for each payroll period.

Dynamic OffsetsWhen creating a payroll definition, you can use dynamic offsets for payroll cycle events. All of the predefined payroll timeperiods you can use support dynamically generated dates for offsets. Using dynamic offsets, you can offset each payroll cycleevent by a specified number days before or after the start or end date, as shown in this table.

Offset Day Types Offset Value Base Date Values

Number of work days Number of calendar days

Before After

Period Start Date Period End Date

For example, you might want to set the cutoff date three work days before the payroll end date. This offset accommodatesdifferences in the number of days in the payroll period and also accounts for weekends and holidays.



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Fixed-Date OffsetsThe predefined Monthly (Calendar) payroll time period supports using both dynamic offsets and fixed-date offsets. Using fixeddates, you can adjust the exact date of each of the payroll cycle events for the first payroll period. Any adjustments that youmake are reflected in the payroll calendar for subsequent payroll time periods. For example, if you set the cutoff date as the25th of the month, then all payroll periods in the calendar will have those offsets.

Specific Date AdjustmentsOnce you generate the payroll time periods, you can further adjust any specific calendar dates, as needed. For example, ifyou know of a particular bank holiday that falls on a payment date, you might want to adjust the dates manually on the payrollcalendar's time period. You can make these adjustments when creating a payroll definition or any time after then, as long asthe time period is in the future. Adjust the dates of an existing time definition on the Time Periods tab on the Manage PayrollDefinitions page.

Related Topics

• Periodicity Conversion

Creating Payroll DefinitionsThis example demonstrates how to create two payroll definitions for different payment frequencies that are associated withone consolidation group and one legislative data group.

In this example, the InFusion Company creates payroll definitions for two sets of employees. One set is permanent salariedemployees who are paid on a semimonthly basis, and the other is temporary employees that are paid on a monthly basisusing time card data.

The business requires that a single monthly costing process uses results from different payroll runs by using the consolidationgroup name as an input parameter in the costing run. This example creates two payroll definitions with different paymentperiods with the same consolidation group. Both definitions are effective starting on 1/1/11 and generate payroll time periodscovering five years.

Prerequisites1. Ensure that the legislative data group for your payrolls exists, such as InFusion LDG.2. Ensure that organization payment methods exist for your payrolls, such as InFusion Employee Check and InFusion

Employee EFT.3. Create a consolidation group named InFusion Employee Group assigned to the InFusion LDG.

Creating the Payroll DefinitionsCreate two payroll definitions:

• One to pay permanent employees a flat amount by electronic funds transfer (EFT) on a semimonthly basis. Thispayroll definition includes dynamically generated offset dates.

• One to pay temporary employees by check using time card data on a monthly calendar basis.

Perform the following steps twice, first using the semimonthly values and then using the monthly values.

1. In the Payroll Calculation work area, click Manage Payroll Definitions.2. In the Search Results section of the Manage Payroll Definitions page, click the Create icon.3. Select the InFusion LDG legislative data group from the list.



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4. Enter 1/1/11 as the effective start date you want the payroll to be available for use, and then click Continue.

In this example, your company hires all employees after the effective start date of this payroll definition, so there is noissue with loading historical employee data.

5. In the Basic Details section, complete the fields as shown in this table, and then click Next.

Field Semimonthly Value Monthly Value

Name

InFusion Employee Semimonthly

InFusion Employee Monthly

Reporting Name

InFusion Semimonthly

InFusion Monthly

Consolidation Group

InFusion Employee Group

InFusion Employee Group

Period Type

Semimonthly

Monthly (Calendar)

First Period End Date

6/15/12

6/30/12

Default Payment Method

InFusion Employee EFT

InFusion Employee Check

6. On the Payroll Offsets page, in the Number of Years field, enter 5.

Note: The application generates the calendar of payroll periods in increments of 10 or fewer years.For example, if you want a 12-year calendar of payroll periods, you first enter 10 years and submit yourchanges. Then you edit the payroll definition, setting the number of years to 12.

7. For the semimonthly payroll, use dynamic variables to define offsets as shown in this table, and then click Next.

Field Falls Value Day Type Value Offset Value Base Date Value

Cutoff Date

5

Work Days

Before

Period End Date

Planned SubmissionDate

4

Work Days

Before

Period End Date

Payroll Run Date

0

Work Days

Before

Period End Date


0

Work Days

Before

Period End Date

Date Earned

0

Work Days

Before

Period End Date

Date Paid

0

Work Days

Before

Period End Date

8. For the monthly payroll, use fixed dates to define offsets as shown in this table, and then click Next.

Field Value

Fixed Date

Yes



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Field Value

Cutoff Date

6/25/12

Date Earned

6/28/12

Payroll Run Date

6/28/12

Date Paid

6/28/12


6/28/12

Planned Submission Date

6/26/12

9. On the Payroll Calendar page, adjust payroll days to account for a bank holiday, as shown in this table.

Column Semimonthly Value Monthly Value

Payroll Run Date

Old Value: 11/28/13 New Value: 11/27/13

Old Value: 5/27/13 New Value: 5/28/13

10. Click Next.11. Review the details of the payroll definition, and then click Submit.

Related Topics• How Payment Methods and Payroll DefinitionsWork Together

Time Card Required OptionIf a worker's pay calculations depend upon the worker submitting time cards, you must indicate that a time card is required atthe appropriate employment level. Select the Time Card Required check box for each assignment level that the requirementapplies. Don't select the Time Card Required check box for these scenarios:

• A salaried employee completes project time cards for billing purposes, but isn't paid based upon those time entries

• An hourly employee is normally paid based on a predefined work schedule and only submits a time card for overtimeor when absent

Selecting the Time Card Required OptionYour role determines where typically you select the Time Card Required check box:

• HR specialists can select the check box on the Employment Information page of the new hire flow.

• Payroll managers and payroll administrators can select the Manage Payroll Relationship task in the PayrollCalculations or Payroll Administration work areas. The Payment Details section of the Manage Person Details pageincludes the Time Card Required check box on the Assignment sections.

The following table shows which hours the payroll calculation uses for elements with a calculation rule of hours multiplied byrate.



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Time Card Required Hours Used in Calculations

Yes

Time card entries

No

Work schedule, unless you enter hours as element entries

Related Topics• Create Elements for Time Card Entries

• Processing Time Entries in Payroll

Time Definitions

Use Time Definitions for Severance PayThe following example illustrates how to set up a user-defined time definition and associate it with elements so that payrolladministrators can extend the latest entry date for severance payments to employees.

ScenarioThe InFusion Corporation makes severance payments, including regular salary, and car allowance. For most terminatedemployees, these payments should end on the termination date. However, payroll administrators must be able to makepayments for employees who receive severance pay.

Element Duration DatesWhen you create an element, you select the latest entry date. The options are predefined time definitions: last standardearnings date, last standard process date, or final close date. Typically, standard earnings elements use the last standardearnings date. However, this option doesn't support severance payments because you can't have a last standard earningsdate that is beyond the termination date.

AnalysisTo support severance payments, InFusion creates a user-defined time definition based on last standard earnings date andselects it as the latest entry date for payments after termination. On the payroll relationship record of terminated employees,the value of the user-defined time definition is the termination date by default, but payroll administrators can edit it to makepayments for certain employees.

Resulting SetupTo implement a user-defined time definition for this scenario, InFusion must complete the following setup duringimplementation:

1. Using the Manage Time Definitions task, create a time definition.This table lists field names and their respective values for creating a user-defined time definition.

Field Value

Type User-defined date

http://www.oracle.com/pls/topic/lookup?ctx=fa19c&id=DDCF356F0F6265D3E040D30A6881657F



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Field Value

Name

Last Earnings or Severance Date

Short Name

LastEarnSevDate

User-Defined Date

Last Standard Earnings Date

User-Defined Date Usages

Assigned payroll end date Element entry end date Payroll assignment end date Payroll relationship end date Payroll term end date

This creates a time definition based on the last standard earnings date.2. Using the Manage Elements task, create the Regular Salary, Car Allowance, and Alimony elements.3. In the Durations area, select Last Earnings or Severance Date as the latest entry date for the element.

To extend the payment date for a terminated employee, the payroll administrator then performs the following steps:

1. Using the Manage Payroll Relationship task, search for and select the terminated employee.2. In the Payroll Details area, select the assignment.3. In the Element Duration Dates area, in the row for the Last Earnings or Severance Date time definition, change the

End Date value to the desired final entry date for payments.

For example, add 6 months of severance pay for an employee who was terminated effective 20 November 2012.Change the End Date value of the Last Earnings or Severance Date time definition to 21 May 2013.

The employee's element entries for the Regular Salary, Car Allowance, and Alimony elements end on this date.

Related Topics



Run Types

Run Types: ExplainedRun types control the elements and payment types to process in a payroll run. You may specify default payment methodsthat override the default payment methods on the payroll definition.





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Two predefined run types, Regular and Supplemental, group the other run types and determine their processing sequence.

• The Regular run type includes the following run types:

◦ Regular Normal

◦ Process Separately

◦ Separate Payment

• The supplemental run type includes:

◦ Supplemental Normal

◦ Process Separately

◦ Separate Payment

A Separate Payment run type creates a separate payment for each element entry marked to pay separately.

A Process Separately run type generates a separate payroll calculation for each element entry marked to process separately.

When the separate processes are completed, the element run results are included with the normal payroll run results in asingle payment. You use a separate process to exclude element run results in regular tax calculation on the normal run, forexample, to use supplemental tax rates. It therefore results in a lower rate for the normal run as well as for the supplementalearnings.

The run types are predefined and you will rarely create additional run types.

User Defined Tables

Create a User-Defined Table for Matched Row ValuesUser-defined tables store a date effective list of values that you can use in a formula. Set up your own structured tablesto hold data such as wage codes or shift differentials. In this example, you create a user-defined table to store values forworkers' schedules. To create a new table, use the Manage User-Defined Tables task in the Payroll Calculation work area.

ScenarioYour organization works on a 10 hour a day, four day a week rotating schedule. The employees work for four consecutivedays, 10 hours a day.

User-Defined Table ComponentsThese are the main components of the user-defined table.

• Basic details

• Columns

• Rows

• Values



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AnalysisAs this figure shows, the user-defined table contains the schedules available in your organization.

Monday

Tuesday

Monday - Thursday

Tuesday - Friday

Wednesday - Saturday

Thursday - Sunday

Wednesday

Thursday

Friday

Saturday

Sunday

10 0 0 0

10 10 0 0

10 10 10 0

10 10 10 10

0 10 10 10

0 0 10 10

0 0 0 10

Values(Scheduled Hours)

User-DefinedRows

(Days of Week)

User-DefinedColumns

(ScheduledWork Days)

Resulting User-Defined Table ComponentsThis table shows the resulting user-defined table components for this scenario.

Component In This Example

Basic Details

The Unit of measure is a text since the row values are Days of the Week. The row title is Days of the Week.

Rows

Contain the name of a day of the week.

Columns

These are the schedules, such as Monday - Thursday. The data type for each column is numberbecause they hold a number of hours.

Values

Represent the number of hours to work each day in each schedule.

Example to Create a User-Defined Table for a Range of Row ValuesUse the Manage User-Defined Tables task in the Payroll Calculation work area to create a user-defined table to storevalues for stock option allocations.



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ScenarioEach year, your organization offers stock options to its employees. The amount of options depends on years of service andjob category of the employee receiving them.

User-Defined Table ComponentsThe main components of the user-defined table are the definition, columns, rows, and values.

• Basic details

• Columns

• Rows

• Values

AnalysisAs this image shows, the user-defined table contains stock option allocations by job category and years of service.

Resulting User-Defined Table ComponentsThis table shows the resulting user-defined table components for this scenario.


Basic DetailsThe unit of measure is a number since the row values are years. The row title is Years of Service.



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Rows

Represent a range of years of service during which employees receive the same number of stockoptions.

Columns

Represent job categories and the data type of each column is number because they hold a numberof stock options.

Values

Represent the number of stock options awarded to the specified job category during the specifiedyears of service.

User Table Validation Formula TypeThe User Table Validation formula type validates entries in user-defined tables. Select the formula in the Formula field foruser-defined columns when you create or edit user-defined tables.

For example, you can use this formula type to ensure that entries are:

• Between a specified range

• Not a negative amount

ContextsThe EFFECTIVE_DATE (text) context is used for formulas of this type.

Input VariablesThere must be one input variable and it must be called ENTRY_VALUE. The data type is text.

Return ValuesThe following return values are available to formulas of this type:

Return Value Data Type Required Description

FORMULA_ MESSAGE

Text

N

Returns a text message for eitheror both statuses. The messageis displayed on the Create User-Defined Table: User-DefinedTable Values page.

FORMULA_STATUS

Text

Y

Returns the value S (success) orE (error).

Sample FormulaThis formula checks that the deduction entered in the Union A column of the Union Dues table is between 10.00 and 20.00:

/* Formula Name: Union A Dues Validation *//* Formula Type: User Table Validation */



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INPUTS ARE entry_value (text)IF TO_NUMBER(entry_value) < 10.00 OR TO_NUMBER(entry_value) > 20.00 THEN(formula_status = 'e' formula_message = 'Error: Union A dues must be between $10.00 and $20.00.')ELSE(formula_status = 's'formula_message = ' ')RETURN formula_status, formula_message



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Chapter 7Setting Up Fast Formulas

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7 Setting Up Fast Formulas

Using Formulas

Using Formulas: ExplainedFast formulas are generic expressions of calculations or comparisons that you want to repeat with different input variables.Each formula usage summarized in this topic corresponds to one or more formula types, requiring specific formula inputs andoutputs. You can use the Manage Fast Formulas task in the Setup and Maintenance work area, or work areas relevant to theformula type, such as Payroll Calculation.

Note: Requirements for specific formula inputs and outputs are explained in separate chapters of the OracleGlobal HR Cloud: Using Fast Formula guide.

Calculate PayrollsYou can write payroll calculations and skip rules for elements to represent earnings and deductions.

With fast formulas you can:

• Associate more than one payroll formula with each element to perform different processing for employeeassignments with different statuses.

• Define elements and formulas for earnings and deductions with highly complex calculations requiring multiple calls tothe database.

• Associate a skip rule formula with an element to define the circumstances in which it's processed.

• Configure the predefined proration formula to control how payroll runs prorate element entries when they encounteran event, such as a mid-period change in an element entry value.

Validate Element Inputs or User-Defined TablesUse lookups or maximum and minimum values to validate user entries.

For more complex validations you can write a formula to check the entry. You can also use a formula to validate entries inuser tables.

Edit the Rules for Populating Work Relationship or Payroll Relationship GroupsYou can define criteria to dynamically populate a payroll relationship group or work relationship group.

When you create a payroll relationship group or work relationship group formula type, you can choose to use an expressioneditor or a text editor. The expression editor makes it easy to build criteria to define the group. For more complex conditions,such as validations, you can select the text editor.



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Example of Writing a Fast Formula Using Formula TextThis example demonstrates how to create a fast formula using the text editor to return the range of scheduled hours formanagers and a different range for other workers.

Before you create your formula, you may want to determine the following:


Is the formula for a specific legislative data group?

No, this is a global formula that can be used by any legislative datagroup.

What is the formula type for this formula?

Range of Scheduled Hours

Are there any contexts used in this formula?

No

Are there any database item defaults?

Yes, ASG_JOB

Are there any input value defaults?

No

What are the return values?

MIN_HOURS, MAX_HOURS, FREQUENCY

Creating a Fast Formula Using the Text Editor to Determine a Manager's ScheduledHours


Offering: Workforce Deployment

Functional Area: Payroll

Task: Manage Fast Formulas2. Click Go to Task.3. On the Manage Fast Formula page, click the Create icon to create a new formula.4. On the Create Fast Formula page, complete the fields as shown in this table.

Fields for the Fast Formula Values for the Fast Formula

Formula Name

Manager Range of Scheduled Hours

Formula Type

Range of Scheduled Hours

Description

Manager's Range of Hours

Effective Start Date

1-Jan-2010

5. Click Continue.



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6. Enter the following formula details in the Formula Text section:/* DATABASE ITEM DEFAULTS BEGIN */DEFAULT FOR asg_job IS ' '/* DATABASE ITEM DEFAULTS END */JOB_1 = ASG_JOBIF JOB_1 = 'Manager' then(MIN_HOURS = 25MAX_HOURS = 40FREQUENCY = 'H')else(MIN_HOURS = 20MAX_HOURS = 35FREQUENCY = 'H')return MIN_HOURS, MAX_HOURS, FREQUENCY

7. Click Compile.8. Click Save.

Related Topics• Overview of Using Formula Components

• Formula Operators

Example of Writing a Fast Formula Using Expression EditorThis example demonstrates how to create a fast formula that groups executive workers for reporting and processing. Allexecutive workers are in department EXECT_10000. Once the formula is created, it will be added to the object groupparameters so that only those workers in department EXECT_10000 are used in processing.

Before you create your formula, you may want to determine the following:


Is the formula for a specific legislative data group?

Yes, InVision

What is the formula type for this formula?

Payroll Relationship Group

Creating a Fast Formula Using the Expression Editor1. On the Payroll Calculation Tasks page, click Manage Fast Formulas to open the Manage Fast Formulas page.2. On the Manage Fast Formula page, click the Create icon to create a new formula.3. On the Create Fast Formula page, complete the fields as shown in this table.

Fields for Fast Formula Values for Fast Formula

Formula Name

Executive Payroll Relationship Group

Type


Description

Executive Workers

Legislative Data Group Vision LDG

http://www.oracle.com/pls/topic/lookup?ctx=fa19c&id=955E31483F31136EE040D30A68814644




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Fields for Fast Formula Values for Fast Formula

Effective As-of Date

1-Jan-2010

Type of Editor

Expression Builder

Note: For more complex conditions to create a group, you can select Text. However,once you save the formula, you can't change the type of editor.

4. Click Continue.5. In the Formula Details section, click Add After to add a row to enter the fields in this table.

Conjunction Database Item Name Data Type Operand Literal Value

None applicable

DEPARTMENT

Character

=

'EXECT_10000'

And

SELECT_EMP

Character

=

'YES'

6. Click Compile.7. Click Save.

Related Topics• Formula Operators

Formula Errors

Types of Formula Compilation ErrorsCompilation errors are displayed in the Manage Fast Formulas page after you compile the formula. The compiler stops thecompilation process when it encounters an error. Error messages display the line number and the type of error.

Common Compilation ErrorsHere's some of the common formula compilation errors.

Formula Compilation Error Description

Syntax Error

The formula text violates the grammatical rules for the formula language. For example, if you use IF1instead of IF in an IF statement.

Incorrect Statement Order

ALIAS, DEFAULT, or INPUT statements come after other statements.

Misuse of ASSIGNMENT Statement Occurs when any of these conditions exist:

• An ASSIGNMENT assigns a value to a database item.




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Formula Compilation Error Description

• A context is assigned a value externally to a CHANGE_CONTEXTS statement.• The formula assigns a value to a non-context variable within a CHANGE_CONTEXTS

statement.

You can use CHANGE_CONTEXTS statements in a formula.

Misuse of ALIAS Statement

You can use an ALIAS statement only for a database item.

Missing DEFAULT Statement

A database item that specifies a default value must have a DEFAULT statement.

Misuse of DEFAULT Statement

You specify a DEFAULT statement for a variable other than as an input or a database item.

Uninitialized Variable

The compiler detects that a variable is uninitialized when used. The compiler can't do this in allcases. This error often occurs when the formula includes a database item that requires contextsthat the formula type doesn't support. The formula treats the database item as a local variable.For example, balance database items require the PAYROLL_ REL_ACTION_ID PAYROLL_ASSIGNMENT_ID and CALC_ BREAKDOWN_ ID contexts. Typically, you use these statements informulas of type Oracle Payroll.

Missing Function Call

The compiler doesn't recognize a function call. The combination of return type, function name, andparameter types doesn't match any available function.

Incorrect Operator Usage

An instance of a formula operator use doesn't match the permitted uses of that operator. For example, the + operator has two permitted uses. The operands are both of data type NUMBER,or both of data type TEXT.

Inconsistent Data Type Usage

The formula uses a formula variable of more than one data type. Or the formula uses a databaseitem or context with the wrong data type. For example, Variable A is assigned a NUMBER value at the start of the formula, but is assigned aTEXT value later in the formula.

EXIT Statement Not Within WHILE Loop

A condition that eventually becomes false or an EXIT call for exiting the loop doesn't exist.

Misuse of Context

The formula uses a variable as a context, or a context as a variable. For example, a formula assigns a value to AREA1 as an ordinary variable, but later uses AREA1 as acontext in a GET_CONTEXT call.

Types of Formula Execution ErrorsFast formula execution errors occur when a problem arises while a formula is running. The usual cause is a data problem,either in the formula or in the application database.

Formula Execution ErrorsThis table lists the type and description of each formula execution error.



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Formula Error Type Description

Uninitialized Variable

Where the formula compiler can't fully determine if a variable or context is initialized, it generatescode to test if the variable is initialized. When the formula executes, this code displays an error if the variable or context isn't initialized.

Divide by Zero

Raised when a numeric value is divided by zero.

No Data Found

Raised when a non-array type database item unexpectedly fails to return any data. If the databaseitem can't return data, then it should provide a default value. You can do this by creating a default statement. An error in formula function code can also causethis error message.

Too Many Rows

Raised when a non-array type database item unexpectedly returns more than a single row of data.The cause is an incorrect assumption made about how the data is being accessed. An error in the formula function code can also cause this error message.

NULL Data Found

Raised when a database item unexpectedly returns a NULL data value. If the database item canreturn a NULL value, then it provides a default value.

Note: Some database items can't return a NULL value. If it can, then you can provide adefault value for that database item.

Value Exceeded Allowable Range

Raised for a variety of reasons, such as exceeding the maximum allowable length of a string.

Invalid Number

Raised when a formula attempts to convert a nonnumeric string to a number.

User Defined Function Error

Raised from within a formula function. The error message text is provided as part of the formulaerror message.

External Function Call Error

A formula function returned an error, but didn't provide any additional information to the formulacode. The function might have sent error information to the logging destination for the executingcode.

Function Returned NULL Value

A formula function returned a NULL value.

Too Many Iterations

A single WHILE loop, or a combination of WHILE loops, has exceeded the maximum number ofpermitted iterations. The error is raised to terminate loops that can never end. This indicates aprogramming error within the formula.

Array Data Value Not Set

The formula attempted to access an array index that has no data value. This error occurs in theformula code.

Invalid Type Parameter for WSA_EXISTS

An invalid data type was specified in the WSA_EXISTS call.

Incorrect Data Type For Stored Item

When retrieving an item using WSA_GET, the actual data type doesn't match that of the storeditem. This error occurs within the calling formula.



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Formula Error Type Description

Called Formula Not Found

The called formula couldn't be resolved when attempting to call a formula from a formula. This issuecould be due to an error in the calling formula, or because of installation issues.

Recursive Formula Call

An attempt was made to call a formula from itself. The call could be made directly or indirectly fromanother called formula. Recursive formula calling isn't permitted.

Input Data Has Different Types in Calledand Calling Formulas

When calling a formula from a formula, the input data type within the called formula doesn't matchthe data type specified from the calling formula.

Output Has Different Types In Calledand Calling Formulas

When calling a formula from a formula, the output data type within the called formula doesn't matchthe data type specified from the calling formula.

Too Many Formula Calls

When a formula calls another formula in its text so it becomes a hierarchy. The maximum depth ofthe hierarchy is 10.

FAQs for Fast Formulas

When do I run the Compile Formula process?When you create or update multiple fast formulas at the same time, run the Compile Formula process on the Submit aProcess or Report page from the Payroll Administration work area.

What's the difference between a formula compilation error and anexecution error?Compilation errors occur on the Manage Fast Formulas page when you compile the formula. An error message explainsthe nature of the error. Common compilation errors are syntax errors resulting from typing mistakes. You can view errormessages on the dashboard or go to the messages tab directly after the process is run.

Execution errors occur when a problem arises while a formula is running. The usual cause is a data problem, either in theformula or in the application database.



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Chapter 8Setting Up Balances

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8 Setting Up Balances

Balance Definitions

Payroll Balance DefinitionsPayroll balances show the accumulation of values over a period of time. Payroll processes, such as Calculate Payroll andCalculate Gross Earnings, update the balance values. The values can be an amount, hours, or any other numeric value. Youmanage balance definitions in the Payroll Calculation work area.

Most of the balances you require are predefined, and depending on your country extension, the application creates additionalbalances automatically when you create elements. You can edit the definition of these generated balances, or createadditional balances for calculations or reporting.

Important aspects of balance definitions are:

• Balance Categories

• Balance Dimensions

• Balance Feeds

• Balance Groups

• Units of Measure

• Generated Balances and Database Items

• Base Balances

• Remuneration

Balance CategoriesWhen creating a new balance in the implementation phase, you must associate it to one of the predefined categories. .

Units of MeasureThe predefined units of measure available for selection are Day, Hour (with different combinations of minutes and seconds),Integer, Money, and Number. The unit of measure of the balance must match the unit of measure of the element input valuesthat feed it.

Generated Balances and Database ItemsThe element template creates a primary feed to a new balance when you create:

• An earnings element in a legislative data group that uses the Payroll Interface country extension

• Any element in a legislative data group that uses the Payroll country extension

You select the type of configuration on the Manage Features by Country or Territory page.

The element template also creates a database item for each balance dimension. You can use the database items in yourformulas or HCM extracts to use the value of a balance.



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Base BalancesYou can specify a base balance when there is a dependent relationship between balances for processing and reporting. Forexample, Loan Repayment could be the base balance for Loan Repayment Arrears.

RemunerationOnly one balance in each legislative data group is predefined as the remuneration balance. This balance generates paymentsfor employees. For example, the remuneration balance might be Net Pay. This calculated balance is the sum of standardearnings and supplemental earnings minus all the deductions calculated for the run.

Balance DimensionsEach payroll balance can have multiple dimensions, which define the specific value to retrieve. Balance dimensions arepredefined and typically combine these components:

• Time span, such as run, period-to-date, or fiscal year-to-date

• Employment relationship level, either assignmentor payroll relationship

• Context, required for some balances only, such as tax reporting unit, element, or payroll

For example, if you select the Core Assignment Tax Unit Year-to-Date dimension for the Gross Earnings balance, you createthe defined balance GROSS_EARNINGS_ASG_TU_YTD. This defined balance accumulates gross earnings for an assignmentin a specific tax reporting unit from the beginning of the calendar year-to-date.

Balance FeedsBalance feeds define the source of the payroll calculation results that contribute to a balance. The source could be inputvalues of specific elements or the entire element classification. For example, the pay values of all earnings types contributeto the Gross Pay balance. The feeds can add to (+) or subtract from (-) a balance. The sign of a feed is independent of thesign of the result that feeds the balance. For example, deductions feed Net Pay with a negative feed. However, if an excessdeduction of $100 is returned, the deduction result itself is -$100 and will effectively increase Net Pay by $100.

Balance Feeds by ElementBalance feeds by element indicate one or more element input values to add or subtract from a balance. For each balancefeed, all input values must use the same unit of measure. For example, you wouldn't mix money and hours in the samebalance feed.

Each element and input value can be the primary feed for one balance only. When you create an element, the elementtemplate creates this balance and feed automatically.

Balance Feeds by ClassificationBalance feeds defined by primary or secondary element classification or by a subclassification use the input value that hasthe special purpose of Primary Output Value. The unit of measure of this input value must match the unit of measure of thebalance.

If you add a primary classification as a balance feed, you can't add its children from the secondary or subclassifications. Forexample, if you use the Supplemental Earnings primary classification as a balance feed, you can't also use any other childrenof Supplemental Earnings. Also, you can't use both secondary classifications and subclassifications in the same balance feed.



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Balance Feeds for Initial Balance LoadingYou can select elements in the Balance Initialization classification to feed a balance for initialization purposes only. Select oneelement for each level of the employment hierarchy associated with a dimension that you want to initialize.

Balances in Net-to-Gross CalculationsDetermine which deduction balances the net-to-gross process uses to calculate the gross amount from the desired netamount for an earnings element. Use the Manage Balance Definitions task to set the default values and determine which ofthe enabled balances are included for a specific net-to-gross earnings element.

Enable Inclusion in Net-to-Gross CalculationsUse the Manage Balance Definitions task to view the dimensions that are enabled for inclusion in net-to-gross calculations.You can also view which of the enabled dimensions are included by default for each new net-to-gross earnings element.

Exclude Balances from a Specific Net-to-Gross Earnings ElementIf a balance is enabled but not included, you can still use it in the processing of a specific net-to-gross earnings element.To do so, you add the balance using the Manage Elements task. You can also use this task to exclude balances that areincluded by default.

Related Topics

• How Net-to-Gross Earnings are Calculated

• Create a Net-to-Gross Earnings Element

Generating Run Balances: ExplainedThe payroll calculation process generates run results and values for all balances. Creating or updating balance definitions andbalance feeds can impact balance calculations and stored balance values for run balance dimensions.

When stored balance dimensions are no longer accurate, the Run Balance Status column on the Manage Balance Definitionstask displays the status of the balance dimensions as invalid. Reports and processes continue to obtain accurate values fromthe summed run results, but summing run results can slow performance.

To improve performance and accuracy, recalculate the invalid balance values for saved run balance dimensions by submittingthe Generate Run Balances process from the Payroll Checklist or Payroll Calculation work areas.

This topic covers:

• Submitting the Generate Run Balances process

• Using Generating Run Balances Examples

Submitting the Generate Run Balances ProcessSubmit the process before you submit the payroll run or after you create or update these tasks:

• Balance definition using the Manage Balances task, for example to add balance feeds or new balance dimensions

• Balance feeds to an element using the Manage Elements task



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When you submit the process, you specify parameters that control which balances to generate as shown in the followingtable.

Flow Submission Parameters Purpose

Balances to Include Identifies the set of balances to include when submitting the process:

• All balances• All invalid balances• Single balance

Note: If you select a single balance, you must specify both a balance and adimension name.

Balance Name

Lists balance names marked as run balances when a single balance is selected.

Dimension Name

Lists run dimensions when a single balance is selected. The list is filtered again when the balancename is selected.

Using Generating Run Balances ExamplesThere are different ways you can use generate run balances to improve performance and accuracy in your payroll system.

• Updating a balance feed effective date

Your enterprise stops the transportation allowance element as of January 1. This ends the balance feeds betweenthe element input value and the related balances, such as gross-to-net. It also sets the status of the balance valuesfor completed payroll runs to invalid. You submit the Generate Run Balance process to recalculate the balancevalues and set the status to valid.

• Adding a new balance feed

You receive notification January 31 that a non-taxable earning became taxable as of January 1. You add a balancefeed to the earnings element so that the input value feeds a taxable pay balance. You submit the Generate RunBalances process and recalculate the balance values for the taxable pay balance.

Balance Groups and Usages

Balance Groups and UsagesBalance groups represent a collection of balance definitions, which you can use to retrieve balance values for reports,archives, and balance views. You manage balance groups in the Payroll Calculation work area.

Important aspects of balance groups and usages include:

• Balance group level

• Balance definitions

• Restrictions



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• Default inclusions category

• Balance group usages

• Matrix and table formats

• Sorting

Balance Group LevelThe balance group level (employee or organization) determines the balance dimensions of the balance definitions that youcan include in the group.

Balance DefinitionsOn the Balance Definitions page of a balance group you can see the balances associated with the balance group. Theinformation includes the balance name, balance dimension, balance category, unit of measurement, and legislative datagroup. A balance category groups together similar balances. It is similar to the element classifications - for each elementclassification there is a corresponding balance category. You can also use this page to search for and add balance definitionsto your own balance groups and to certain predefined balance groups. If you need to add multiple balance definitions at atime, the Select and Add Balance Definitions dialog is used to hold current selected balance definitions while searching forother balance definitions.

RestrictionsRestrictions control which balance definitions you can add to the balance group. Balance group restrictions are a list ofbalance categories, a list of balance dimensions, or a list of balance categories and dimensions that belong together.Restrictions limit the balances that you can add to the balance group based on a particular category or dimension or acombination of category and dimension. The Included balances restricted by category and the Included balances restrictedby dimension check boxes are automatically updated on the Balance Group Details page as you add restrictions on theRestrictions page. For example, the standard earnings category means that the balance group is restricted to all balancesbased on the standard earnings category. 1) An user can have the balance group without restrictions. 2) "Included BalancesRestricted by Category" and "Included Balances Restricted by Dimension" flags are driven by Restrictions setup here.

Note: In some situations you can update a restriction if it's not used by balance definitions and defaultinclusions. The Edit button on the Restriction page is enabled if the selected row can be updated. A balancegroup may be defined without restrictions.

Default InclusionsDefault inclusions are combinations of balance categories and dimensions. Any balance definitions you subsequently create,manually or through the element template, that meet those criteria are automatically included in the group.

Balance Group UsagesBalance group usages represent an instance of how a particular balance group is used. Balance group usages also storedetailed information about how the balance data is formatted. A balance group should have at least one usage but can alsohave many balance group usages.

Matrix and Table FormatsA balance group usage can use a matrix or table format. For a matrix format, you select balance dimensions as columns inthe matrix and decide their position in the matrix using the Position. The first Position must be 1 and any additional Positionnumbers must be sequential.



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Only the balance dimensions that you select as columns for the matrix are displayed. If you do not specify the balancedimensions as matrix items, they do not display, regardless of what dimensions are contained in the defined balances in thebalance group.

SortingSorting determines the order in which balance types and dimensions display for the balance group usage.

You can select one of the sort methods listed below.

• Name - Sorts balance values by balance name.

• Value - Sorts balances by the actual balance value.

• Static Order - Sorts balance values according to the sequence that you specify in the Sort Items table.

If you select Table, all the balances in the balance group are returned one line at a time in the table format. If youselect the Matrix format, you can add balance dimensions and decide their position in the matrix.

Examples of Balance Group UsagesFor predefined balance group usages, you can add matrix items to the group and associate them with existing balancegroups for use in reports, archives, and views. While you can't modify existing usages that are predefined, you can modifymatrix items that are user-defined.

You can include balance dimensions for multiple time periods in your balance group usage, such as the current payroll run,month-to-date, or year-to-date.

Note: The report type is the owner of the balance group usage. A usage can have only one report type

Report Type Balance Categories

Global Archive

Archive of current and year-to-date city tax code balances for areas 1, 2 and 3

Global Balance Views

Earnings default balances for the Balance Views page

Global Deduction

Balances for involuntary, pre-statutory, social insurance, and tax deductions

Global Element Results

Direct payments tax balances at the assignment and relationship levels

Global End of Year Archive

Payroll Relationship level balances

Global Payroll Activity Report

Earnings balances at the payroll relationship level for the current payroll period and year-to-date

Global Payroll Run Result Report

Balances for all earnings at the assignment and relationship levels

Global Statutory Deductions Report

All city, county, state, and school tax deduction balances for the current period and year-to-date

Global Gross to Net Direct payment balances for a group tax unit for the current period and year-to-date



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Report Type Balance Categories

Statement of Earnings

City, county, and state pretax deductions for the current payroll period and year-to-date

Scenario

Rules for Editing Balance Groups and Their UsagesThe limitations on the changes you can make to balance groups and usages are different for predefined and user-definedgroups.

Balance Group RulesThis table explains the actions you can take for both predefined and user-defined balance groups.

Action Predefined Balance Group User-Defined Balance Group

Create balance group

No

Yes

Edit balance group

No

Yes

Delete balance group

No

Yes

Add balance definitions

No, unless the Add button in the table menuis enabled

Yes

Remove balance definitions

No, unless the balance definitions are addedby the user.

Yes

Add restrictions

No

Yes

Edit restrictions

No

No

Delete restrictions

No

Yes

Edit the balance group level

No

Yes, if the group contains no balancedefinitions, default inclusions or dimensionrestrictions.

Add default inclusions

No, unless the Add button in the table menuis enabled

Yes

Edit default inclusions

No

Yes

Delete default inclusions

No

Yes



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Balance Groups Usage RulesThe only change you can make to a predefined balance group usage is to add matrix items.

For a user-defined usage, you can:

• Edit or delete the usage

• Edit the usage details

• Add or delete matrix items

• Create, edit, or delete sorting definitions

Caution: You can't change the format type of a usage after you save it. Additionally, you can't change the sortmethod unless you delete the existing sort items.

Create Balance Groups and UsagesThis example demonstrates how to create a balance group and balance group usage for a user-defined report of voluntarydeductions.

PrerequisiteIf you are creating a user-defined report, create a lookup code for the report in the PAY_BALANCE_REPORT_TYPE lookup.




Task: Manage Common Lookups2. Search for and select the PAY_BALANCE_REPORT_TYPE lookup type.3. Add the lookup code, meaning, and description for the user-defined report in the Lookup Codes section.

Creating a Balance Group1. In the Payroll Calculation work area, select Manage Balance Groups.2. Click Create to open the Create Balance Group dialog box.3. Select a legislative data group and enter a name for the balance group.4. Click Continue.

The Balance Group Details page displays.5. Select Employee as the balance group level.6. Click Save.7. Select the Balance Definitions folder under the Balance Group Overview list.8. Click Select and Add.9. In the Select and Add: Balance Definitions dialog box, enter the following values.

Field Value

Dimension Name

Relationship Run



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Field Value

Category

Voluntary Deductions

10. Click Search.11. In the Results section, select the balance definitions that you want to add and then click OK.

Tip: You can select multiple balance definitions in the Select and Add window. Hold down the Shift keyto select a group of consecutive balance definitions. To select individual balance definitions hold down theControl key and select the balance definitions that you want to add to the balance group. Click Apply andkeep the dialog window open to add the query to search the selected balance definitions . Click OK toadd the selected balance definitions and close the dialog window.

12. Click Submit.13. Click Done.

Create a Balance Group Usage1. In the Payroll Calculation work area, select Manage Balance Group Usages.2. Click Create.3. In the Create Balance Group Usage dialog box, complete the fields as shown in this table.

Field Value

Legislative data group

Enter the same LDG as the balance group for which you are creating the usage.

Name

Employee voluntary deduction run balances

Balance Group

The group you created in the previous task

Format Type

Table

4. Click Continue.You are returned to the Balance Group Usage Details page.

5. Select the report type (this was the report type that you added as a lookup code to thePAY_BALANCE_REPORT_TYPE lookup).

6. Click Save.7. Select the Sorting folder under Balance Group Usage Overview list.8. From the Actions drop down list on the right, select Create.9. Complete the fields as shown in this table.

Field Value

Name

Any

Sort Method

Name

Sort By

Balance Type

Order Ascending



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Field Value

10. Click Save.11. Click Done.

Balance Exceptions

Examples of Balance ExceptionsBalance exceptions define the criteria that you want to use to identify overpayments, underpayments, and trends. Thisinformation can help detect the balance adjustments needed to correct payments and identify people in your organizationwho are prominent in specific areas such as sales. The following examples illustrate two different types of balance exceptionsthat you may want to include in your balance exception reports.

You create reports using the Manage Balance Exceptions task in the Payroll Calculation work area.

Track Increases in CommissionsInFusion US plans to train incoming sales staff on productivity techniques. To identify exceptional sales staff in theorganization, you can run a report that lists workers whose commissions increased by 25 percent compared to their averagesfor the previous 3 months. To find out who the sales leaders are, set up a balance exception using the values in the followingtable.

Field Values

Balance Exception Name

Commission Increases Over 25 Percent

Comparison Type

Average in Months

Comparison Value

3

Balance Name

Commissions

Dimension Name

Relationship Period to Date

Variance Type

Percent

Variance Operator

Greater than

Variance Value

25

Severity Level

3

Note: Enter a lower value for a high priority exception.



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Track Gross EarningsBefore InFusion US certifies its current payroll run, the payroll manager wants to know if gross payments are in line with theprevious payroll run. The previous run verified the established levels of earnings that the company wants to maintain for theremainder of the quarter. The table below provides an example of the values you enter to set up a balance exception to findout if gross earnings exceed the gross earnings of the previous period by more than 10 percent:

Field Values


Gross Earnings

Comparison Type

Previous period

Comparison Value

1

Balance Name

Gross Earnings

Dimension Name


Variance Type

Percent

Variance Operator

Greater than

Variance Value

10

Severity Level

1


Balance ExceptionsUse balance exception reports to identify potential overpayments or underpayments. Comparison types define the periodthat is used to determine whether an exception has occurred. Variance operators enable you to specify the precise range ofvariance that you want to report on.

Comparison TypesWhen you're creating balance exceptions, you must select a comparison type. For example, select Average in months as thecomparison type and enter 3 in the Comparison Value field. In this scenario, the current month is compared to the average ofthe previous three months.

Some comparison values are preset and you can't change them:

• Current month, Current period, Current quarter, and Current year always have a comparison value of 0.

• Previous period and Previous month have a comparison value of 1.



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This table lists each comparison type that you can select and explains how it operates as a basis of comparison.

Comparison Type How it Operates as a Basis of Comparison

Average in months

Compares the current month to date with the average of previous months to date. Only available ifyou have the balance dimensions ASG_MONTH or _PER_MONTH.

Current month

Compares values to the total for the current month to date. Doesn't use any previous month as abasis for comparison.

Current period

Compares values to the total for the current period to date. Doesn't use any previous period as abasis for comparison.

Current quarter

Compares values to the total for the current quarter to date. Doesn't use any previous period as abasis for comparison.

Current year

Compares values to the total for the current year to date. Doesn't use any previous period as abasis for comparison.

Previous month

Uses the previous month as a basis of comparison.

Previous period

Uses the previous period as a basis of comparison.

Variance OperatorsThe table describes the variance operators that you can use for your balance exception reports.

The Results column indicates the effect of selecting each variance operator assuming that these sample data is used:

• Comparison type is previous month

• Balance name is monthly car allowance

• Dimension name is relationship previous month to date

• Previous month amount is 500

• Variance value is 100

Variance Operator Balance Exception Report Output Results (based on sample data)

Variance, plus or minus

Note: This operator applies only forcomparison types of 'Previous', likePrevious Months or Previous Period, aswell as 'Average in Months'.

All relationships that either exceed or areless than the previous month amount by theamount or percentage stated in the variancevalue.

Returns all relationships with a value less than400 and greater than 600.

Less than

All relationships that are less than theprevious month amount by the amount orpercentage stated in the variance value.

Returns all relationships with a value of lessthan 400.



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Variance Operator Balance Exception Report Output Results (based on sample data)

Less than or equal

All relationships with a current value eitherequal to or less than the previous monthamount by the amount or percentage statedin the variance value.

Returns all relationships with a value of 400or less.

Equal

All values that are exactly equal to the higherlimit or the lower limit of the variance value.

Returns all relationships with a current valueequal to 400 or 600.

Greater than

All relationships that are greater than theprevious month amount by the amount orpercentage stated in the variance value.

Returns all relationships with a value of morethan 600.

Greater than or equal

All relationships with a current value eitherequal to or greater than the previous monthamount by the amount or percentage statedin the variance value.

Returns all relationships with a value of 600or more.

Does not equal

All relationships with a current value not equalto the previous month amount.

Returns all relationships with a value otherthan 500.

Severity LevelSeverity Level controls the order in which the exceptions are displayed in the balance exception report. Balance exceptionswith the higher severity are displayed first (1 being the highest)

Using Formula Variance TypeYou can write a fast formula using the Balance Exception formula type to return a variance value that you can use foridentifying exceptions for a balance. To use this feature, select the Formula variance type on the Create Balance Exceptionpage and then select the formula that you created from the Formula ID field.

Using Balance Variance TypeTo reference two balances in the balance exception equation, select the Balance variance type on the Create BalanceException page and then select the Target Balance Name and Target Dimension Name. The context values for TargetDimension Name are inherited from the Dimension Name you select on the left-hand side of the Create Balance Exceptionpage as the first Dimension. No additional contexts are set for Target Dimension Name.

Balance Exception Report

Create a Balance Exception ReportThis example demonstrates how to create and run a balance exception report. The report compares the total payments youmade to your employee population for the current payroll period with the payments you made in the previous period.

Before you create your report, you may want to determine the following:



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Which balance holds the values to compare?

Net Payment

What period of time should the balances be compared to?

Previous period

How many periods do you want to compare the balances to?

1

Creating a balance exception report involves creating a balance exception, creating the report, and then running the report.

Create a Balance ExceptionTo derive net pay amounts for the previous period:

1. Open the Payroll Calculation work area, and then click Manage Balance Exceptions task.2. Click Create.3. Select the InFusion egislative data group and click OK.4. Complete the fields as shown in this table:

Field Value


Compare Net Payment Amounts to the Previous Period

Comparison Type

Previous period

Comparison Value

1 For comparison types that begin with Previous, the application enters 1 as the default value andmakes it read only.

Balance Name

Net Payment

Dimension Name


Variance Type

Percent

Variance Operator

Greater than

Variance Value

10

Severity Level

1


5. Click Submit.

Create a Balance Exception Report1. In the Tasks pane, click Manage Balance Exceptions and Reports.



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2. Click Create.3. Select the InFusion legislative data group and click OK.4. Complete the fields as shown in this table:

Field Value

Exception Report Name


Consolidation Group

InFusion Weekly

Payroll

InFusion Weekly Payroll

5. Click Add.6. Select the Compare Net Payment Amounts to the Previous Period balance exception name and then click OK.7. Click Submit.

Run the Balance Exception Report1. In the Tasks pane, click Submit a Process or Report.2. Select the InFusion legislative data group.3. Select the Run Balance Exception Report flow pattern and then click Next.4. Complete the fields as shown in this table:

Field Value

Payroll Flow

InFusion Weekly Balance Report

Process End Date

9/7/12



Payroll

InFusion Weekly

5. Click Next.When you enter information on the Submit a Process or Report - Flow Interaction page, select Current Flow as thepayroll flow and Run Balance Exception Report as the task to ensure the report uses the payroll balances results forthe current payroll flow.

6. Click Next.7. Click Submit.8. Click OK and View Checklist.9. In the task list click Go to Task for the Run Balance Exception Report.

10. Click the View Results link associated with the process number for the report.11. When the View results page opens, click the report link. The output is in PDF format.

Balance Exception ReportUse the Balance Exception Report to identify potentially incorrect payments or amounts withheld. The report identifies valuesthat vary for the same balance dimension. This variance could indicate overpayments or underpayments.



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To run this report, use the Run Balance Exception Report task from the Payroll Calculation or Checklist work area. Before yourun this report you must:

PrerequisitesBefore you run this report you must:

• Use the Manage Balance Exceptions task from the Payroll Calculation work area to create a balance exception.

• Use the Manage Balance Exceptions and Reports task from the Payroll Calculation work area to create a balanceexception report that groups together one or more balance exceptions.

Balance ExceptionsA balance exception determines the criteria you use to identify values that vary for the same balance dimension. The variancecould be in terms of incorrect payments or amounts withheld. When you create a balance exception you specify:

• A comparison type and comparison value to define the period that is used to determine the exception.

• A Balance Type and Balance Dimension that specifies the balance value that is evaluated for the exception. You canonly select balance dimensions that are compatible with the Comparison Type you specified. For example, if theComparison Type is Current Period, you will only be able to select balance dimensions of type ‘Period to Date’.

• The variance operator and the variance value to specify the precise range of variance that you want to report on.

For example, you want to determine the monthly car allowance paid to employees in excess of 600 more than the previousmonth. You can create a balance exception, specifying the attributes as given in the table below.

Attributes Value

Comparison Type

Previous Month

Comparison Value

1

Variance Operator

Greater Than

Variance Value

600

Balance Type

Monthly Car Allowance

Balance Dimension

Month-to-Date

Balance Exception Report Name

You must create an Exception Report Name that you can use to run the Balance Exception Report. For instance, in theabove example, you can create an Exception Report Name of Monthly Car Allowances Paid in Excess of the Previous Month.

Report Parameters



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The parameter values determine which records to include in the report. For example, you can run this report for a specificconsolidation group or payroll relationship group. You must predefine these groups before you can use them. Mostparameters are self-explanatory, while the following have special meaning in the context of this report.

Payroll Flow

The name of the payroll flow you use to run this report. The selected flow uniquely identifies a specific instance of the reportexecution.

Process Start Date

Use this field to specify the first effective date of the payroll process to include in the report. All processes with an effectivedate same or greater than the Process Start Date are reported.

Process End Date

Use this field to specify the last effective date of the payroll process to include in the report. For Payroll Runs this is the'Payroll Run Date'. All processes with an effective date equal to or prior to the Process End Date are reported.

Note: For offset payrolls, the effective date of the payroll or QuickPay run could be after the end date of thepayroll period. In such cases, you must ensure that your Process End Date must be on or after the effectivedate of the process you want to include in the report.


The name of the Balance Exception Report you use to run this report.

Payroll

Select the required payroll name.

Process Configuration Group

Use this field to run the report for a specific process configuration group, instead of the default one. A process configurationgroup is used to set rules for payroll processes, such as passwords or number of threads. You can select a value only if youhave a predefined process configuration group.

Consolidation Group

Use this field to run the report against a consolidation group. For example, you can use this field to run this report for a subsetof payrolls. You can select a value only if you have a predefined consolidation group.

Location

Use this field to view the balance results for employees who have at least one assignment for the selected location. Thebalance values may not necessarily correspond to the location parameter only. It is also dependent on the dimensions andthe other associated contexts.


Use this field to run the report for persons belonging to a specific payroll relationship group. You can specify a value only ifyou have a predefined payroll relationship group.



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Note: Use the Manage Object Groups task to define a payroll relationship group before you can use it here.

You can also provide values to run this report for a specific payroll statutory unit or tax reporting unit.

After you have entered the above details, click Next. On the Flow Interaction Page, select the payroll flow as the Current Flowand the Run Balance Exception Report as the task. This ensures that the report uses the payroll balances for the currentpayroll flow.

Report ResultsThe report provides details of payroll balance results for matching persons, filtered by the defined exception criteria, specifiedtime frame and the selected parameters. The output report includes:

• Payroll Statutory Unit

• Tax Reporting Unit

• Person Number

• Person Name

• Payroll Relationship Number

• Employment Level

• Current Balance

• Variance Value

The report output additionally displays the Previous Balance, Difference, and Difference % columns when the ComparisonType is Previous Period or Previous Month.

Related Topics

• Balance Exception Formula Type

Severity Level for Balance ExceptionsSeverity Level controls the order in which the exceptions are displayed in the balance exception report. While defining abalance exception, enter a severity level to specify the priority of the exception. An exception with a lower severity level has ahigher priority than one with a higher severity level value.

When you run the Balance Exception Report, you can take an action on the exception basis the severity level defined for theexception. For example, suppose you have the following two exceptions:

• Net Pay less than 100

• The difference in Base Salary from previous period to current period is 1000

Ideally, you should enter a lower value for the first exception, so that when you run the Balance Exception Report, the payrolluser can first look into reconciling the lower Net Pay exception.

Note: The value you enter has no impact on the balance exception calculation.

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FAQs for Balances

Can I calculate balances that go back 12 months?Yes. You can use certain balance dimensions to calculate balances based on a 12-month period rolling back from theeffective date. The 12-month rolling balance provides a sum total for the balance dimension that you select.

If the balance dimension is used in a payroll run or report, however, it calculates a balance based on the 12-month periodprior to the effective date of the run.

For example, let's say you wanted to retrieve balances for an employee for 12 months. If the effective date is 31-AUG-2015,you can then use a balance dimension to summarize all run results for the period from 01-SEP-2014 to 31-AUG-2015.

What balance dimensions can I use to calculate balances for a 12-month roll back period?You can use these balance dimensions to calculate balances for a 12-month roll back period:

This table lists the available balance dimension types and balance dimensions.

Balance Dimension Type Balance Dimension

Rolling 12 Month Balance Dimensions

• Relationship Tax Unit Rolling 12 Month• Assignment Tax Unit Rolling 12 Month

Resident City Balance Dimensions

• Term Tax Unit Resident City Month-to-Date• Term Tax Unit Resident City Quarter-to-Date• Term Tax Unit Resident City Year-to-Date• Assignment Tax Unit Resident City Month-to-Date• Assignment Tax Unit Resident City Quarter-to-Date• Assignment Tax Unit Resident City Year-to-Date

Statutory Report Code BalanceDimensions • Relationship Tax Unit Statutory Report Code Run

• Relationship Tax Unit Statutory Report Code Month-to-Date• Relationship Tax Unit Statutory Report Code Quarter-to-Date• Relationship Tax Unit Statutory Report Code Year-to-Date• Relationship Tax Unit Statutory Report Code Period-to-Date• Term Tax Unit Statutory Report Code Run• Term Tax Unit Statutory Report Code Month-to-Date• Term Tax Unit Statutory Report Code Quarter-to-Date• Term Tax Unit Statutory Report Code Year-to-Date• Term Tax Unit Statutory Report Code Period-to-Date• Assignment Tax Unit Statutory Report Code Run• Assignment Tax Unit Statutory Report Code Month- to-Date• Assignment Tax Unit Statutory Report Code Quarter-to-Date• Assignment Tax Unit Statutory Report Code Year-to-Date



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Balance Dimension Type Balance Dimension

• Assignment Tax Unit Statutory Report Code Period-to-Date


Chapter 9Setting Up Pay Calculation Components

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9 Setting Up Pay Calculation Components

Calculation Information

Payroll Calculation InformationWhen you create an element, the application generates the rules and definitions required to calculate earnings or deductionamount. For all types of elements, these rules and definitions include elements, formulas, and processing rules.

This topic explains the payroll calculation information rules and definitions generated for user-defined elements with one of thefollowing categories:

• Absence

• Benefit

• Involuntary Deductions

• Time card

All predefined tax and social insurance elements also include payroll calculation information rules and definitions.

Note: Elements that use calculation information definitions do not capture the values required for the calculationon element input values.

Task SummaryThe following table summarizes the purpose of each type of calculation information and the task you can use to view or edit it.


Payroll calculation information

The manage payroll calculation informationtask groups rates and rules used by thepayroll run to calculate values for user-defined earnings, and deductions. Predefined elements such as tax andsocial insurance rules also use the payrollcalculation feature to provide a group of ratesand rules which vary by country or territory.


Payroll components

A payroll component is a group of rates andrules that the payroll run uses to calculatevalues for earnings and deductions. When you create elements in certainclassifications and categories, such asinvoluntary deductions, the element templatecreates a payroll component with the samename.

Use the Manage Payroll CalculationInformation task to view payroll componentsand their associated rules.



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You can manage payroll components usingpredefined component groups, which varyby country or territory but may include socialinsurance, taxes, retirement plans, involuntarydeductions, and benefits.

Wage basis rules

Wage basis rules determine the earningsthat contribute to a deductible amount or,for exemptions, the elements that reduce theamount subject to deduction. For example, wage basis rules might definewhich secondary classifications of standardand supplemental earnings are subject to aparticular tax. Rules may vary based on reference criteriasuch as a worker's place of residence.

Use the Manage Component Group Rulestask to define the rules and references. Use the Manage Calculation Cards task toenter reference values for workers.

Calculation value definitions

Calculation value definitions store calculationrates and rules, which may vary based onother criteria. For example you can use calculation valuedefinitions to calculate regional income taxrates for employees, which vary based ontheir income levels. The calculation value definition controlswhich calculation values are enterable on acalculation card.

Use the Manage Calculation Value Definitionstask to view predefined definitions and thedefinitions that element templates create.

Note: You can edit definitions thatelement templates create, such asadding default calculation values.

Calculation factors

Calculation factors indicate which calculationvalue definition to use when calculating theamount. For example, a calculation factor mightidentify which set of tax rates to use basedon the tax code of the employee. If tax rates vary based on a factor such asa person's filing status, then filing status isdefined as a calculation factor reference.Thus, an element may have multiplecalculation factors, one for each unique set ofrules and references values.

Use the Manage Elements, Element Overviewtask to access calculation factors. Use the Manage Payroll CalculationInformation task to create new calculationfactors. Normally, you don't need to createnew factors, but if you do, you must also editthe element's payroll formula to use the newcalculation factors.

Calculation components

When an element template creates a payrollcomponent, it also creates calculationcomponents that you can enter on personalcalculation cards to enter specific details forthe person.

Use the Manage Calculation Cards task toenter calculation components for a person.

Calculation types

A calculation type describes a way ofcalculating a value. For example, calculatinga value as a Flat Amount or by applying aRate to a value.

Use the Manage Calculation Value Definitionstask to view calculation types.



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There is a predefined set of CalculationTypes.

Calculation steps A Calculation Step is a name or label that

denotes part of a payroll calculation.

For example, a time calculation can consist ofthe following parts:

• Calculate hours worked• Calculate hourly rate

A regional tax calculation can consist of thefollowing parts:

• Calculate Exemptions• Calculate Allowances• Calculate Tax

Each one of these is a calculation step in afast formula.


Calculation methods

Predefined calculation methods are a way ofperforming a payroll calculation. For example, a tax could be calculated usinga cumulative year-to-date payroll balance ora periodic payroll value.


Calculation factors

Calculation factors create an associationbetween an element, calculation step, and acalculation value definition. Calculation factors indicate which calculationvalue definition to use when calculating theamount. Calculation factors can support complexcalculations such as tax rates. For example,if a tax rate varies based on a factor such asa person's filing status the filing status can bedefined as a calculation factor reference thus,an element may have multiple calculationfactors, one for each unique set of rules andreferences values.

Use the Manage Elements, Element Overviewtask.

Related Topics

• How You Add Involuntary Deductions to a Calculation Card



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Examples of Payroll Calculation Information at the Legislative LevelTo understand how the rules and definitions for calculating payroll components work together, let's examine two commonexamples: income tax deductions and social insurance deductions.

Each example provides sample values for the following rules and definitions:

• Component group

• References for wage basis rules

• References for calculation factors

• Wage basis rules

• Related elements

• Calculation factors for elements

• Associations for tax reporting

Individual Income Tax DeductionA particular country or territory has a statutory deduction for an individual income tax. The exemption amount for the taxvaries based on the person's residential status. The earnings classifications included in the wage basis for the tax vary bygeographical region. Therefore, references are defined for both the wage basis rules and the calculation factors.

The calculation is a two-step process that calculates the exemption and then calculates the tax amount based on thereduced deductible amount.

• Component group: Taxes

• Component name: Individual Income Tax Deduction

• References for wage basis rules:

Reference Name Reference Value

Geographical Region

Mainland

Geographical Region

Territory

• References for calculation factors:


Residential Status

Resident

Residential Status

Nonresident

• Wage basis rules:



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Geographical Region ReferenceValue

Primary Classification Secondary Classification Use in Wage Basis?

Mainland

Standard Earnings

All secondary classificationsselected

Y

Territory

Standard Earnings

All secondary classificationsselected

Y

Mainland

Supplemental Earnings

Commission

Y

Territory


Commission

N

Mainland


Personal Use of Company Car

Y

Territory



N

• Related element: Individual Income Tax Processor

The processing rule (a fast formula) associated with this element drives the income tax calculation. It accesses theappropriate calculation factor, based on the resident status reference value and the current step in the calculationprocess.

• Calculation factors for Individual Income Tax Processor element:

Resident StatusReference Value

Calculation Step Calculation Method Calculation ValueDefinition

Values

Nonresident

Calculate exemptionamount

None

Tax Exemption Amountfor Nonresident

4800

Resident

Calculate exemptionamount

None

Tax Exemption forResident

2000

(None)

Calculate individualincome tax

None

Individual Income TaxRate

0-50000: 3% 50000-100000: 4% Over 10000: 5%

• Tax reporting units: All tax reporting units defined for this payroll statutory unit can report this calculationcomponent. You associate calculation components with a specific tax reporting unit on the personal calculationcard.

Social Insurance DeductionThe same country has a statutory deduction for a social insurance tax. Both the employer and the employee contribute to thesocial insurance tax, but their contribution rates are different. Calculation of the deduction includes several steps:

1. Calculate the base amount for the employee's contribution.2. Calculate the base amount for the employer's contribution.



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3. Calculate the employee's contribution amount.4. Calculate the employer's contribution amount.

The following rules and definitions apply to this calculation at the legislative level:

• Component group: Social Insurance

• Component name: Medical Insurance Deduction

• References for wage basis rules: None

• References for calculation factors:


Contribution Level

Employee

Contribution Level

Employer

• Wage basis rules:

Primary Classification Secondary Classification Use in Wage Basis?

Standard Earnings

All secondary classifications selected

Y


All secondary classifications selected

Y

• Related elements: Medical Insurance Calculation elementThe processing rule (fast formula) associated with this element drives the social insurance calculation. It accesses theappropriate calculation factor, based on the contribution level reference value and the current step in the calculationprocess.

• Calculation factors for Medical Insurance Calculation element:

Contribution LevelReference Value

Calculation Step Calculation Method Calculation ValueDefinition

Values

Employee

Calculate EmployeeBase Amount

None

Employee ContributionUpper Limit

8000

Employee

Calculate Employer BaseAmount

None

Employer ContributionUpper Limit

5000

Employer

Calculate EmployeeContribution Amount

None

Employee ContributionAmount

4%

Employer

Calculate EmployerContribution Amount

None

Employer ContributionAmount

3%

• Tax reporting units: All tax reporting units defined for this payroll statutory unit can report this calculationcomponent. You associate calculation components with a specific tax reporting unit on the personal calculationcard.



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Calculation Cards

Examples of Creating Calculation Cards for Deductions at DifferentLevelsYou can create and manage calculation cards at several different levels, from an individual person to a payroll statutoryunit. Use the cards to capture information specific to a person or organization, such as an employee's tax filing status or anemployer's tax identification number. Calculation card entries override default values defined at other levels. The priority ofinformation, from highest to lowest, is as follows:

1. Personal calculation card (payroll relationship level)2. Tax reporting unit calculation card3. Payroll statutory unit calculation card4. Calculation value definitions (legislative data group level)

Note: Not all countries or territories support creating calculation cards for payroll statutory units and taxreporting units. The enterable values at each level also vary by country or territory. The basic steps to create andmanage calculation cards are the same at all levels.

Use these examples to understand when you might define calculation cards at each level.

Personal Calculation CardScenario: An employee qualifies for a special reduced tax rate.

Task: Manage Calculation Cards task in the Payroll Administration work area.

Tax Reporting Unit CardScenario: The income tax exemption amount is 2000 at the legislative data group level, but a tax reporting unit in a particularstate or province uses an exemption amount of 2500. Enter this default value for the tax reporting unit, which can beoverridden on personal calculation cards.

Task: Manage Legal Reporting Unit Calculation Cards task in the Setup and Maintenance work area.

Payroll Statutory Unit CardScenario: During application setup, the implementation team defines default contribution rates for the payroll statutory unit.

Task: Manage Legal Entity Calculation Cards task in the Setup and Maintenance work area.

Calculation Value DefinitionScenario: You can view the predefined income tax rates for your country, but you cannot edit them.

Task: Manage Calculation Value Definitions task in the Payroll Calculation work area.

If an employer qualifies for a special tax rate, enter these values on a calculation card at the appropriate level.



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How Entries of Personal Calculation Cards Fit TogetherPersonal payroll calculation cards capture information specific to a particular payroll relationship. Payroll runs use thisinformation to calculate earnings and deductions. Actions such as hiring a person or loading data may create some cardsautomatically. Otherwise, you can create the card manually. You can also add components to cards and enter calculationvalues, which may override default values. Additionally, you can associate the card with a tax reporting unit.

To view and manage calculation cards use the Manage Calculation Cards task in the Payroll Administration or PayrollCalculation work area.

Card TypesThe types of calculation cards you can create and the type of information captured on a card vary by country or territory.Examples include cards for:

• Statutory deductions

• Involuntary deductions

• Time card entries

• Absences

• Benefits and pensions

Additional cards may be available to capture information for reporting purposes.

Card CreationIn countries where all employees are subject to the same set of statutory deductions, the application automatically createsone or more statutory deduction calculation cards. These cards are created when you hire a new employee. In othercountries, you must create calculation cards manually.

For other card types, you create calculation cards as needed for each employee. If you load absence, time card, or pensiondata from another application, the application automatically creates the calculation cards.

Calculation Components and Component GroupsThe Calculation Card Overview pane shows a hierarchy of calculation components within component groups. For example,child support, education loan, and alimony are calculation components in the US involuntary deduction component group.

Each component relates to an element, such as an income tax deduction. Adding a calculation component to the cardcreates an entry for the related element.

A calculation component may have one or more references that define its context, such as the employee's place of residenceor tax filing status.

Click a row in the Calculation Components table to see component details. Use the Component Details section to enteradditional values used to calculate the component.

Note: For some countries, the Manage Calculation Cards page doesn't include the Calculation Componentsand Component Details sections. Instead, the layout of the page is specific to the data items required for thecountry.



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Enterable Calculation ValuesWhen you select a calculation component, you may see the Enterable Calculation Values on the Calculation Card tab. Hereyou can enter specific rates or other values for the person, which may override default values held on a calculation valuedefinition. For example, if an employee qualifies for a special reduced tax rate, you enter the rate as an enterable value ontheir personal calculation card.

You can't override values loaded from another application, but you may be able to add values, such as adding additionalcontributions to a pension deduction.

Tax Reporting Unit AssociationsClick the Associations node in the Calculation Card Overview pane to associate a tax reporting unit with the card.Associations determine:

• Which rates and rules held at tax reporting unit level apply to the calculation of the components

• How the calculations are aggregated for tax reporting

Rules about what you can enter here vary by country:

• Typically, all components on a calculation card are associated with the same tax reporting unit by default.

• You may be able to associate individual components with different tax reporting units.

• If a person has multiple assignments, you may be able to associate specific assignments with calculationcomponents.

Related Topics• How do I associate calculation components with tax reporting units and assignments on a personal calculation card

Calculation Value Definitions

Calculation Value DefinitionsA calculation value definition specifies how a value is provided or calculated. The value is not necessarily monetary. Typically,it's a flat amount or rate, but it could be a date or a text value, such as a tax code, depending on the calculation type. Somedefinitions hold the values in a table, so that different values apply to different employees.

For example, a graduated tax varies depending on the employee's earnings balance. The calculation value definition for thistax might contain two rows where you define the tax rate for:

• Earnings under 50,000

• Earnings above 50,000

Calculation Value Definitions ProvidedEach localization provides a set of predefined calculation value definitions used to calculate statutory and involuntarydeductions. You cannot edit the predefined calculation value definitions.

In addition, when you create the following element types, the element template creates calculation value definitions based onyour selections:

• Pensions

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• Involuntary deductions

• Absences

• Time cards

Create or Edit Calculation Value DefinitionsThe element template creates calculation value definitions when you create elements with a certain category such as benefits,absences, and time card elements.

You can also create or edit calculation value definitions using the Manage Calculation Value Definitions task in the PayrollCalculation area. For example, you can create value definitions to capture additional attributes that are required for yourcompany's absence or time calculations.

You can also create value definitions to calculate a rate derived from a rate definition or values defined by criteria.

Value Definition GroupsWhen you create a calculation value definition, either select an existing group or create a new one. The group categorizesrelated calculation value definitions. The predefined set of standard groups is available to all countries or territories.

Examples of predefined value definition groups include Time and Absences. You should select these when creating valuedefinitions for elements with the corresponding element category.

Calculation FactorsSome elements, such as statutory deductions, require a large number of calculation value definitions. They use calculationfactors to determine when and how to apply each calculation value definition, based on a reference value.

For example, a calculation factor may direct the payroll process to:

• Use a calculation value definition only if the person lives in Region B.

• Annualize the calculated result to produce the final amount

Use the Manage Payroll Calculation Information task in the Payroll Calculation work area to view and manage calculationfactors.

Related Topics• Payroll Calculation Information

Calculation Value Definitions ExamplesIn these deduction examples, the calculation value depends on where the employee falls in an earnings range. The From andTo values of the range can be static or dynamic. Dynamic values are a fraction of the value of a database item, such as grossearnings. These examples also illustrate how to override the default calculation type for selected values in the range.

Static ValuesThe calculation value definition for a regional income tax uses a default calculation type of Flat Rate. However, for the lowestand highest incomes, a flat amount applies. For these two values, the Flat Amount calculation type overrides the defaulttype, and uses a monetary value rather than a percentage. The Basis of Calculation Values field is blank, so the values arestatic.

The following table shows sample static values for this calculation value definition.



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From Value To Value Calculation Type Override Rate or Amount

0

199

Flat Amount

0

200

999

_

4 (percent)

1000

1999

_

6 (percent)

2000

999,999,999

Flat Amount

300

Dynamic ValuesThe calculation value definition for a tax exemption uses a default calculation type of Incremental Rate. The first and lastvalues specify the Flat Amount calculation type, which overrides the default type. The Basis of Calculation Values fieldspecifies the Gross Earnings YTD database item. This means the From and To values represent a percentage of year-to-dategross earnings.

The following table shows sample dynamic values for this calculation value definition.

From Value To Value Calculation Type Override Rate or Amount

0

.1

Flat Amount

300

.1

.2

_

10 (percent)

.2

.9

_

30 (percent)

.9

1

Flat Amount

0

The first row defines a flat amount of 300 that applies to the first 10 percent of gross earnings. The second row defines a10 percent rate that applies to the next 10 percent of gross earnings. The third row defines a 30 percent rate that applies tobetween 20 and 90 percent of gross earnings. The final row defines a flat amount of 0 between 90 and 100 percent.

Enterable Values on Calculation CardsSome values entered on a calculation card override values defined in a calculation value definition. For example, you mightset a default tax rate for the legislative data group, and allow the rate to be overridden by a flat amount entered on a personalcalculation card.

The following table explains where you can enter override values on calculation cards. It also provides the order in which theCalculate Payroll process checks for values entered on calculation cards. When the process finds an entered value, it stopschecking and uses the values defined at that level.

Order Type of Values Task Offering/Functional Area

1

Values for a payroll relationshipon any type of calculation card

Manage Calculation Cards

Payroll Calculation or PayrollAdministration



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Order Type of Values Task Offering/Functional Area

2

Values for a tax reporting unit forcertain deductions, which varyby country or territory

Manage Legal Reporting UnitCalculation Cards

Offering: Workforce Deployment Functional Area: Payroll Task: Manage Legal ReportingUnit Calculation Cards

3

Values for a payroll statutory unitfor certain deductions, whichvary by country or territory

Manage Legal Entity CalculationCards

Offering: Workforce Deployment Functional Area: Payroll Task: Manage Legal ReportingUnit Calculation Cards

Allowing Enterable Values on Calculation CardsThe ability to enter values on calculation cards is controlled by the Enterable Calculation Values on Calculation Cards sectionof the calculation value definition:

• For user defined calculation value definitions, you can specify an enterable calculation value in this section. Youprovide:

◦ The display name to appear on the calculation card.

◦ The value type, such as total amount or additional amount.

• Enterable values for statutory and involuntary deductions are predefined. You can't allow new enterable values forpredefined calculation value definitions.

Enterable Value TypesThe list of value types available for entry depends on the calculation type. For example, you can allow users to enter thepercentage value for a flat rate calculation or the monetary value for a flat amount calculation.

The following value types are available for all calculation types except text:

Value Type Description

Calculation value definition

Uses the calculation value definition entered on a calculation card to calculate the amount.

Total amount

Uses the amount entered on the calculation card as the total amount.

Additional amount

Adds the amount entered on the calculation card to the calculated amount.

Calculation Types in Calculation Value DefinitionsThe calculation type determines which values you must provide in the Calculation Values section of the Create or EditCalculation Value Definition page. For example, if you select Flat Amount as the calculation type, then you must provide a



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flat amount value. You specify a default calculation type for the definition, which you can override on individual rows in theCalculation Values section.

Predefined Calculation TypesPredefined calculation types are available for each type of calculation. These work in conjunction with the predefined payrollformulas that contain specific rules for each calculation type, such as the CALL_CALC_VALUE formula.

This table lists and describes predefined calculation types, and indicates whether a calculation type is available for selectionwhen you create a new value definition.

Calculation Type Description UOM Available in Create Flow

Flat Amount

Uses the specified flat amount asthe total amount.

Money

Yes

Flat Amount Times Multiplier

Multiplies a flat amount by amultiplier value. If you selectthis option, you must specify adatabase item that provides thevalue of the multiplier.

Money

Yes

Rate Definition

Retrieves a value by calling a ratedefinition.

Money

Yes

Number

Uses the number entered on thevalue definition as the calculatedvalue.

Number

Yes

Flat Rate

Applies the specified percentagerate to the balance. For example, to apply a rate of10 percent, enter 10.

Number

Yes

Incremental Rate

Applies a different percentagerate to portions of the balance. For example, assuming that thebalance is 80,000, you couldapply a 1 percent rate for thefirst 20,000 of the balance. A 3percent rate for the next 30,000,and a 5 percent rate to the next30,000. This is also referred toas a blended rate.

Number

Yes

Flat Rate by Derived Base

Applies the percentage rate toa value. This value type derivesthe value from another valuedefinition.

Number

Yes

Identifier

A new calculation type isrequired to support identifiers.For example, the value definitioncould capture a job ID and thevalue set feature would enable

Number

Yes



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the user to display the name ofthe job on the page.

Text

Uses the specified characterstring as the calculated value.

Text

Yes

Date

Uses the date entered as thecalculated value.

Text (YY-MM-DATE, HOURSMINS SECS)

Yes

Conditional Flat Amount

Uses the specified flat amountif the condition defined in theCalculation section is met. For example, if a person'sfiling status is married or headof household, that personqualifies for an exemption. Insuch a scenario, you specify aflat amount value in the valuedefinition and the conditiondatabase item returns theperson's filing status. This calculation type supportspredefined calculations, such astax and social insurance.

Money

No

Flat Calculation Total

Supports retrieving valuedefinitions for different rangevalue criteria, includingpredefined calculations, such astax and social insurance.

Money or Number

No

Incremental Calculation (Graded)

Supports retrieving valuedefinitions for different rangevalue criteria, includingpredefined calculations, such astax and social insurance.

Money or Number

No

Standard Formula 1 Calculates the total amount

based on the following formula:

y = Ax - Bz

Where:

• y is the deductedamount.

• x is the calculatedamount.

• A and B are specifiedvalues.

Money or Number

No



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• z is a factor from apredefined formula. Thevalue defaults to 1.

Standard Formula 2 Calculates the value based on

the following formula:

y = (x - A) x B + Cz

Where:

• y is the deductedamount.

• x is the calculatedamount.

• A, B, and C are specifiedvalues.

• z is a factor from apredefined formula. Thevalue defaults to 1.

Money or Number

No

Specify View ObjectsA view object is a query result set. You can specify a view object to define the valid values that are available to the selectedcalculation type.

Note:• The view objects you can specify vary depending on the calculation type. For example, if the calculation type is

Conditional Flat Amount, then specify view objects for the condition and flat amount values.• When you specify a view object, include the fully qualified path name, such as:

oracle.apps.hcm.locUS.payrollSetup.details.publicView.UsStatePVO

Wage Basis Rules

Wage Basis RulesWage basis rules determine the earnings that are subject to a deduction. For exemptions, wage basis rules determine theelements that reduce the amount subject to deduction. Each wage basis rule is associated with a primary or secondaryelement classification. When you define a wage basis rule, you can associate it with up to six references that define thecontext for the rule.

Element ClassificationsWhen you create a new wage basis rule, keep the following in mind regarding element classifications:

• For deduction elements, the classifications identify which types of earnings are subject to the deduction.



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• For exemption elements, the classifications identify which types of earnings reduce the amount subject tocalculation. For example tax exemptions as per tax laws.

References for Wage Basis RulesA wage basis rule may be associated with up to six references that define the context for the rule. Each reference has anumber that determines the sequence in which it's evaluated for processing relative to other references. For example, if awage basis rule for a regional tax deduction has references for both county and city, then the county reference should have ahigher number than the city so that it gets evaluated first.

The wage basis rules and related references for statutory and involuntary deductions are predefined for each country.

Note: You can't edit predefined rules or references.

Creating Wage Basis RulesYou can create new wage basis rules for existing payroll components using the Manage Component Group Rules task in thePayroll Calculation work area. The process is summarized below:

1. On the Manage Component Group Rules page, select the group to which the new rule applies.2. In the Calculation Component Group Overview section, click the group name and then click Wage Basis Rules. If

wage basis rule references have been defined, click the reference.3. In the Wage Basis Rules section, click Create.4. Select the payroll component to which the rule applies.5. Select the primary classifications to be used in the wage basis.6. Provide the reference value for the rule, if applicable.

Using the Use in Wage Basis Check BoxHere are some rules on using the Use in Wage Basis check box that you should know about:

• If you are setting up rules for a non-US legislative data group, select the Use in Wage Basis check box for eachprimary classification you add as a wage basis rule.

• If you are setting up rules for a US legislative data group, there is an extra validation that prevents the insertion of awage basis rule with no secondary classification. You can't select the Use in Wage Basis check box.

Example of Wage Basis RulesTo illustrate how wage basis rules affect a tax calculation, let's look at an example where an employee's earnings included inthe wage basis vary, depending upon where the employee lives.

Taxable Earnings by RegionBrittany is a salesperson who receives a salary of 2,000 each month. Brittany also has a company car she drives. Sheis responsible for reporting her "Personal Use" of the company car in order to be taxed properly. Brittany works inher company's East Coast district, and she spends 50 percent of her time in New York and 50 percent of her time inPennsylvania. The State of New York taxes Brittany for her personal use of the company car; however, Pennsylvania doesnot. Last month, Brittany reported personal use that equated to 100 (50 personal use in New York, and 50 personal use inPennsylvania).

For example:

• In New York, imputed earnings such as personal use of company car amounts are included in the taxable wages.



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• In Pennsylvania, imputed earnings such as personal use of company car amounts are NOT included in taxablewages.

This table shows the tax calculations that apply for each region.

Region Earnings in Salary Eligible Imputed Earnings Taxable Amounts Deduction Amount

New York

1000

50

1050

35

Pennsylvania

1000

(50 - Exempt)

1000

30

The wage basis rules for this tax calculation are as follows:

Region (Reference Value) Primary Classification Secondary Classification Use in Wage Basis?

New York

Standard Earnings

Regular

Y

New York

Imputed Earnings


Y

Pennsylvania

Standard Earnings

Regular

Y

Pennsylvania

Imputed Earnings


N

Component Group Rules

How Cost Components, Cost Elements, and Cost ComponentGroups Work TogetherCost components are user-defined or come from external sources, and are mapped to cost elements which the costingapplication uses to track the cost of items. Use cost component groups to map cost components to cost elements, andto map source cost elements to destination cost elements when items are transferred from one inventory organization toanother.



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This figure illustrates the relationship between cost components, cost elements, cost component groups, and cost profiles.

Item Cost Profile

Cost Component Group

Cost Components Cost Elements

Cost ComponentsCost components are the most granular representation of item costs. Examples of cost components are purchase order itemprice, material, freight, tax, and overhead. Cost Components come from different sources:

• Predefined costs from external sources such as Purchasing, Accounts Payable, and Inventory Management

• Landed cost charges from Oracle Fusion Landed Cost Management.

Cost ElementsA cost element is the level where the costs of an item are tracked through the inventory accounting life cycle. Costcomponents are mapped to cost elements, which enables you to calculate item costs at different granularity levels fordifferent business needs. For example, you may want more granularity for high-value than for low-value items.

You can define cost elements for four types of costs:

• Material cost element type for incoming material cost components.

• Overhead cost element type for costs that are calculated by the cost processor based on user-defined overheadrules.

• Profit in Inventory cost element type for tracking of internal margins when items are transferred from one inventoryorganization to another, including global procurement and drop shipment flows. For cost elements of this type,indicate the Profit in Inventory organization that incurs the gain or loss due to the transfer of goods.

• Adjustment cost element type for separate tracking of cost adjustments, which provides a more detailed view of itemcosts and profit margins.

Cost elements are defined at the set level and thereby have the advantages of set-level definitions for sharing andsegregation. A Profit in Inventory cost element must be assigned to the Common cost element set so that it can be sharedacross cost organizations.



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The following table gives examples of cost element definitions:

Cost Element Set Cost Element Cost Element Type Inventory Organization

Country 1

Metals Material

Material

Not Applicable

Country 1

Plastic Material

Material

Not Applicable

Country 1

Miscellaneous Material

Material

Not Applicable

Country 1


Adjustment

Not Applicable

Country 1

Plant Depreciation

Overhead

Not Applicable

Country 1

Equipment Depreciation

Overhead

Not Applicable

Country 1

Freight Charges

Overhead

Not Applicable

Common

Internal Margin

Profit in Inventory

Seattle

Country 2

Dairy Material

Material

Not Applicable

Country 2


Material

Not Applicable

Country 2

Dairy Material

Adjustment

Not Applicable

Cost Component GroupsUse cost component groups to define mappings of cost components from external sources to cost elements in thecosting application. These mappings provide flexibility in the granularity level where you track costs. You can map one costcomponent to one cost element for a detailed cost breakdown, or several cost components to one cost element for a lessgranular view of costs. For cost components and cost elements that are related to landed cost charges, you can choose tocapitalize them into inventory value, or expense them. All other costs are automatically capitalized.

You can also map source cost elements to destination cost elements when transferring items from one inventory organizationto another. This helps to maintain visibility of the item cost structure from the source application and across the supply chain.

You can specify a default cost component mapping to cost element to be used in cases where the source cost elementdoesn't have a matching destination cost element. The default cost component mapping is helpful when:

• The detailed mapping of a cost component to cost element isn't required, and you want to map it to a single costelement.

• The designated mapping for a cost component is missing. If the mapping is missing, the transaction automaticallypicks up the default cost component mapping.



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Note: If the cost component mapping is missing, the cost processor logs a message in the processing log. Ifthe cost component mapping is missing and there is no default mapping, you can create the mapping and thetransactions will be processed in the next run. If there is a default mapping, the transaction is processed and youcan review the message log to decide if you want to take further action: you can correct the mapping for futuretransactions, and you can create a cost adjustment to reclassify the costs as needed.

Cost component groups are one of the attributes of cost profiles, which the cost processor uses to determine how tocalculate item costs. Cost component groups are defined at the set level and thereby have the advantages of set-leveldefinitions for sharing and segregation. Cost component groups and cost profiles are both set enabled; therefore, only thosecost component groups belonging to the same set as the cost profile are available to that cost profile.

Example 1: The following table describes mapping of one cost component to one cost element.

Mapping Group Cost Component Cost Element

MG1

PO Item Price

Material

MG1

PO Tax

Tax

MG1

Profit in Inventory

PII

MG1

Interorganization Freight

Freight Charges

MG1

Invoice Price Variance

IPV

MG1

Exchange Rate Variance

ERV

MG1

Tax Invoice Price Variance

TIPV

Example 2: The following table describes mapping of cost components to one or more cost elements.

Mapping Group Cost Component Cost Element

MG2

PO Item Price PO Tax NR Tax Invoice Price Variance Exchange Rate Variance Tax Invoice Price Variance

Material

MG2

Interorganization Freight

Freight Charges

MG2

Profit in Inventory

PII



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Example 3: The following table describes mapping of source cost elements to destination cost elements in aninterorganization transfer.

Mapping Group Source Cost Element Set Source Cost Element Destination Cost ElementSet

Destination Cost Element

MG3

Country 1

Material Tax

Country 2

Material

MG3

Country 1

Freight Charges

Country 2

Freight Charges

MG3

Country 1

Other

Country 2

Other

You have flexibility in how you map cost component groups to items:

• Different items in a cost organization and book combination can have the same or different cost component groupmappings if they use different cost profiles.

• One item can have different cost component group mappings in different cost books.

• Several cost organizations can share the same cost component group mappings if they belong to the same set, or ifthey're defined the same way in different sets.



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The following figure illustrates different mappings of cost component groups to items. That is, in a cost organization, Item Amaps to two cost groups, and item B and Item C maps to only one cost group.

Cost Organization

Item C

Item B

Item A

Cost Book 2Cost Profile 2

Mapping Group 2

Cost Book 1Cost Profile 1

Mapping Group1

Related Topics

• Cost Profiles, Default Cost Profiles, and Item Cost Profiles

• Cost Elements and Analysis Groups

• Can I delete, deactivate, or edit a user-defined cost component code

How Planning Cost Organizations, Planning Cost Components, andCost Estimate Mappings Work TogetherStandard cost planning refers to the process of estimating standard costs for use in the costing of inventory or manufacturingtransactions. Planning cost organizations, planning cost components, and estimate mappings are the main elements used inthe standard cost planning process.

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This figure illustrates the relationship between the standard cost planning elements, and how they are used to generatestandard cost estimates.

Planning Cost Organization

Items

Planning Cost Components

Cost Components Cost ElementsEstimate Mappings

Standard Cost

Estimates

Planning Cost OrganizationsEnabling a cost organization for cost planning helps to define and maintain costs across multiple locations and productionfacilities. One of the modeling options is to perform cost planning at the business unit level, by mapping all the inventoryorganizations belonging to the business unit to one cost organization.

Related Topics

• Cost Planning Process

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Calculation Factors

Calculation FactorsCalculation factors define data-driven rules for calculating complex payroll elements, such as statutory deductions. Someelements may have a large number of calculation factors, one for each unique set of rules, ranges, and references values.

Calculation factors create an association between an element, a calculation step, and a calculation value definition.

The payroll run determines which calculation factor to use based on the reference values and calculation rules of the elementbeing processed.

For example, a calculation factor for a tax deduction element might define:

• A context reference, such as a city or state

• The calculation value definition, such as a 4 percent tax rate on balances under 50,000

• Optionally a calculation method and calculation step

Navigate to the Manage Element task and select an element to view and manage calculation factors.

Note: Calculation factors are predefined for statutory and involuntary deductions, and should not need to bechanged.

To view and manage calculation factors, follow these steps:

1. Select the Manage Payroll Calculation Information task in the Payroll Calculation work area.2. Select the calculation component.3. In the Calculation Overview section, expand the Related Elements node.4. Expand the Calculation Factors node to display a list of all calculation factors associated with the element.5. Create new calculation factors and edit existing ones that have an update status of Unlocked.

Note: You can't edit predefined calculation factors or their reference values. If you create a new calculationfactor, you must edit the element's formula to use the new factor.



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Aspects of a calculation factor are shown in the following figure:

Reference Values

Calculation Factor

Calculation Value

Definition

Calculation Step

Calculation Method

Calculation Type

Calculation Values

Fast Formula

Reference ValuesA calculation factor may be associated with up to six references that define its context. For example, the calculation of asocial insurance deduction might vary based on a person's age and employment status.

Each reference has a reference number that determines the order in which it's evaluated for processing relative to otherreferences.

Navigate to the Manage Payroll Calculation Information task and search for a payroll component to view and managecalculation factor reference information.

Calculation Value DefinitionCalculation factors create an association between an element, calculation step and a calculation value definition. Thecalculation value definition defines the calculation type, such as flat amount or flat rate. The calculation rates and rules mayvary based on the amount subject to calculation. Predefined calculation value definitions are provided for statutory andinvoluntary deductions.

Navigate to the Manage Payroll Calculation Value Definition task to view and manage value definitions.

Calculation StepA calculation step is a name or a label assigned to a calculation factor to identify its role in a complex payroll calculation.

For example, a time calculation can consist of several parts, such as:

• Calculate hourly worked

• Calculate hourly rate

And when calculating an income tax deduction, the payroll run can do the following:

• Calculate allowance

• Calculate exemptions

• Calculate tax

This tax deduction might be defined as a single element with multiple calculation steps, each defined in a separate calculationfactor. You can assign the same calculation step to more than one calculation factor. Calculation steps are optional.



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Navigate to the Manage Payroll Calculation Information task to view and manage calculation steps.

Range ValuesRange values capture values required for the calculation. The type of information captured is controlled by the calculation typeof the value definition such as flat amount, rate (percentage) or date.

Navigate to the Manage Payroll Calculation Value Definition task to view and manage range values.

Calculation MethodsA calculation method references a single fast formula. It's an optional component of a calculation factor. Calculation methodsoperate at a higher level than the calculation types defined in the calculation value definition. They provide a wrapper aroundthe calculation of a deduction by retrieving values from a calculation value definition, applying a formula, and returning the finaldeduction amount for the current run.

For example, if the calculation method is set to Cumulative, which references the Core Cumulative fast formula, then thecalculation process returns the total deduction amount as a cumulative year-to-date amount. Accrual calculations for payrollbalance calculations typically restart at the beginning of each calendar year. This is another type of calculation method. In thiscase the plan rule for the accrual term start date is January 1.

Navigate to the Manage Payroll Calculation Information task to view and manage calculation methods.

Related Topics

• Payroll Calculation Information

Examples of Calculation Factors for Payroll DeductionsTo illustrate how the payroll run uses calculation factors to calculate different types of deductions, let's look at a socialinsurance deduction and a national income tax deduction using calculation steps.

Social Insurance DeductionEmployers in many countries or territories deduct social insurance payments from employees and also make contributions.Employee and employer rates are typically different. Such deductions often have wage limits.

The social insurance deduction processor element for this type of calculation might have the following calculation factors:

Employer or EmployeeCode (Reference Value)

Calculation Method Calculation Step Calculation ValueDefinition

Values

Employee

None

Calculate SocialInsurance Employee Rate

Social InsuranceEmployee Rate

4 percent flat rate

Employer

None

Calculate SocialInsurance Employer Rate

Social InsuranceEmployer Rate

2 percent flat rate

Employee

None

Calculate SocialInsurance EmployeeWage Limit

Social InsuranceEmployee Wage Limit

100,000 flat amount



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Employer or EmployeeCode (Reference Value)

Calculation Method Calculation Step Calculation ValueDefinition

Values

Employer

None

Calculate SocialInsurance EmployerWage Limit

Social InsuranceEmployer Wage Limit

100,000 flat amount

National Income Tax Deduction Using Calculation StepsA national income tax calculation involves multiple steps. First, it calculates the allowance, then any exemption amount, andthen it applies the tax rate.

The following table shows a subset of calculation factors that might be associated with a tax processor element.

Filing Status (ReferenceValue)

Calculation Method Calculation Steps Calculation ValueDefinition

Values

Single

None

Calculate Region AAllowance - Single

Region A Allowance -Single

10,000 flat amount

Single

None

Calculate Region AExemption Amount -Single

Region A Exemption -Single

0 flat amount

Single

None

Calculate Region ARegular Rate - Single

Region A Rate - Single

7 percent flat rate

Married

None

Calculate Region AAllowance - Married

Region A Allowance -Married

10,000 flat amount

Married

None

Calculate Region AExemption Amount -Married

Region A Exemption -Married

1,000 flat amount

Married

None

Calculate Region ARegular Rate - Married

Region A Rate - Married

6 percent flat rate

Rate Definitions

Overview of Rate DefinitionsYou can create rate definitions to calculate compensation rates, accrual rates, element entry values, or values defined bycriteria. If the rate is based on multiple balance or element entries, or if it references other rate definitions, you can specifymultiple rate contributors.

Use the Manage Rate Definitions task from the Payroll Calculation work area to define and manage rate definitions.



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CategoriesTo create a new rate, select a category from this table.

Category What it Does

Derived and Rate

Retrieves values from one or more payroll balances or other rate definitions, including rates thatretrieve element entry values. Use this option to create a rate that retrieves a value from one or morerate contributors.

Element Retrieves a value from or posts to an element input value. The element input value must have a

special purpose of either a Primary Input Value or Factor.

• Select the Primary Input Value special purpose for an amount value, such as a salary figure.• Select the Factor special purpose for a factor value, such as a car allowance that you

calculate as 3 per cent of average earnings (factor = 0.03).

Value by Criteria

Retrieves values from a single value by criteria definition. A value by criteria definition specifies one ormore evaluation conditions that determine a particular value or rate. You can specify the conditionsas a tree structure to define the evaluation sequence.

Options to Configure Rate DefinitionsTo configure rate definitions to get your desired rates, you should know how to use the various rate definition options. Forrates based on a single element entry value, you can also apply override and defaulting rules.

This table describes the fields that you can configure for the Derived Rate, Element, and Value by Criteria category types.

Field Category Description

Storage Type

Element If you select the Element category to define

a rate, you must select a storage type ofAmount or Percentage. For example,you can configure a rate definition usingthe Salary element. If the salary is held asa monetary value, select Amount. If thesalary is a factor of another value, such as abalance, select Percentage.

Note: This field is hidden for allrate definition categories otherthan Element.

Element Name

Element Derived Rate

For the Element category, the field is enabledonly when you select the storage type. If you select the Element category to define arate, you must select an element name. Thisis required if you are configuring a primaryrate. This is a rate that retrieves a value froma single element, such as salary.



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For the Derived Rate category, the field isenabled when you access the page.

Employment Level

Derived Rate Value by Criteria

Select either Payroll Relationship, Term,or Assignment. This field is mandatory forall derived rates and value by criteria ratedefinitions. It controls which employment IDthe rates process uses when calling a rate.

If the employee has multiple assignments,the rates process uses the assignment ID toidentify the correct assignment record for theemployee.

Sometimes the contributor value is held at adifferent level to the employment level definedon the rate. In such cases, the rate processuses the employment ID to locate the correctrecord.

Status

Element Derived Rate Value by Criteria

Set the status of a rate to active or inactive.You can't assign an inactive rate to anemployee. Employees that are allocated arate while it was active aren't impacted by achange in status to inactive.

Base Rate

Element Select this option if the rate represents

a base rate that another rate uses in itscalculation. For example, you might have dayshift employees and night shift employees,with different base pay rates.

If each set of employees receives anallowance that's a percentage of the baserate, define one allowance rate. And that rateis calculated based on the two rates thathave the Base Rate option selected.

Overall Salary

Element Derived Rate

If you're defining rates for use on the Salarypage, use the derived rate category anddefine an Overall Salary. To do this, you mustassociate a salary element to the rate. Definean Overall Salary Information element for thispurpose.

Reporting Required

Element Derived Rate Value by Criteria

Select this option to indicate if the calculatedrate value should be stored on the rate tablefor reporting purposes. If you're defining rates for use on the Salarypage, you must select this option. Rate definitions with this option selected areincluded when the Generate HCM Ratesbatch process is run. Use this feature toreport on primary rates and not derived rates.



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HCM extracts use this report to send data tothird parties.

Value by Criteria Name

Value by Criteria

If you select the Value by Criteria categoryto define a rate, you must select a Value byCriteria name. A value by criteria definitionspecifies one or more evaluation conditionsthat determine a particular value or rate.

Returned Rate DetailsYou can specify the periodicity of the returned rate, factor rules, currency, decimal display, rounding rules, and minimumand maximum rules. If the process returns a rate that's outside the minimum and maximum range, you can do one of theseactions.

• Set up an action that enforces the rule, displays a warning

• Forces the user to fix the error

Select the Return FTE Rate check box to instruct the rate definition process to return a part-time value by applying anemployee's FTE to the rate value.

PeriodicitiesYou must specify a periodicity, such as hourly or weekly, for the returned rate and each rate contributor. However, when youuse the rate in a formula, you can override the default periodicity.

The rate calculation converts each contributor to the periodicity specified on the rate contributor. It then adds or subtracts therate contributors, even if the periodicities are different. In most cases, they will be the same. Once the rate contributors aresummed up, the rate calculation then converts them into the return periodicity and currency.

For example, for a rate with a periodicity of weekly using the Standard Rate Annualized conversion formula, the ratecalculation does these actions.

1. Calculates an annual figure from the value and periodicity of each contributing earning and deduction.2. Converts the annual figure into a weekly value.

By default, rates are converted using these predefined rate conversion formulas.

• Standard Rate Annualized

• Standard Rate Daily

• Standard Working Hours Rate Annualized

• Assignment Working Hours Rate Annualized

• Periodic Work Schedule Rate Annualized

If the values in the predefined conversion rules don't meet your requirements, you can define your own.

Factor RulesYou can apply a factor or multiplier to a calculated rate, or to an individual rate contributor. To apply a factor rule, do thesesteps.

• Select Value as the factor rule.

• In the Factor field, enter the number by which you want to multiply the rate.



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• Add the contributor.

You can apply a factor rule to the rate definition, rate contributors, or both. For example, you can define rate contributors tocalculate hourly values based on salary and bonus. You can then apply a factor of 1.0 or 100 percent to the salary balancecontributor and a factor of 0.5 or 50 percent to the bonus balance contributor. The factor rule is applied to the rate before theperiodicity conversion is applied.

Minimum and Maximum ValuesYou can define minimum and maximum values for the returned rate, and for individual rate contributors.

Use the Limit Violation Action field to display an error, warning, or enforce the application to use minimum or maximumvalue that you enter. For example, you can enter 500 as the minimum value and then select Enforce Rules. If the returnedvalue comes back as 400, the application uses 500 as the value.

This table explains the options for the minimum and maximum rate values.

Value Comments

Null

No minimum or maximum value

A specified value

Example: 2000

Based on another rate

Uses the calculated value of the rate definition that you select. Be careful that you don't create a loop. For example, Rate A has minimum value that's based onRate B, which has a minimum value based on Rate A. This situation would result in a runtime error.

Value by Criteria

Minimum or maximum value based on a value by criteria definition.

Override and Defaulting RulesYou can set override and default rules only if you select Element as the category when you define rate definitions. Set upoverride rules for the element associated with your rate definition. If you select the Override Allowed check box, you canenter rate values on the Salary page.

Note: You can't define override and defaulting rules if you select the Values by Criteria category to define a rate.But you can select a formula to validate any rate that's returned and also use formulas to create default values.For example, you can use the HCM Rates Default Value formula type to define the number of workdays in a yearfor your organization.

workday = 250periodicity = YEARreturn workday, periodicity, currency

In addition, you can use a value by criteria definition as the default type. Here, the process uses the value for the first recordcreated and carries that value forward in subsequent records, unless it's manually overridden. The rate engine reevaluates therate that the value by criteria method creates for each subsequent record. So, this rate could change. For example you coulduse a value by criteria definition to enable a default value of 10 percent for bonuses that are targeted to all eligible employees.



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Contributor RulesYou can specify the periodicity for the contributor total. To process contributor totals as full-time equivalency amounts, selectYes in the Process Contributor Total as FTE Amount field. The final rate value is converted from this status to the ReturnRate FTE status.

InformationIn this section, enter text that explains the purpose of the rate, how the rate is calculated, or provides further details for therate. This section is not available for rate definitions using the Value by Criteria categories.

Related Topics

• Configure Periodicity Conversion Rules

Rate Contributors for Derived RatesYou can add four different types of rate contributors to your rate definitions. These rate contributes include, Balance, BaseRate, Overall Salary, and Rate Definitions. You can add rate contributors when you define a rate using the Derived Ratecategory. You can also manually add rate contributors for the Element category when the storage type is Factor.

For example, if you define a bonus rate which is 0.1 (10 percent) of average earnings, then you do these steps.

• Enter 0.1 as the factor on the element.

• Define a rate contributor based on your average earnings balance.

Rate Contributor TypesThis table lists the types of rate contributors, descriptions, and the additional fields that display for each type.

Type What it Contains Additional Fields

Balance Value calculated by these payroll processes.

• An employee's average salary rateover their last three months of salarypayments

• Taxable earnings for the last tax year• Commissions paid in the last quarter

Balance Name Balance Dimension Divisional Balance

Base Rate

Value from the employee's Base Rate

Employment Level

Overall Salary

Value from the employee's Overall Salary rate

Note: If the rate definition is an OverallSalary Rate, you can't select OverallSalary as a Contributor Type.

Employment Level

Rate Definition

Other rate definitions that contribute to therate definition you are creating.

Rate Name

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Type What it Contains Additional Fields

For example you can add regular salary, carallowance, and bonus pay rate contributorstogether to create an overall salary definition.

Reference DatesYou can select a reference date, which is the date the application uses to retrieve rate contributor information for the ratecalculation. The reference date specifies the context for the balance dimension.

For example, to retrieve a rate as of the actual start of an absence, select Absence Start Date. To retrieve a rate as of aspecific time period, select a specific time period.

The Reference Date field lists only these types of time definitions:

• Time Span - a period of time, such as three months

• Retrieval Date - a type of time definition that is based on a database item

Selecting a value for the Reference Date field is optional.

Note: If you don't select a reference date, the application uses the effective as-of date that is used by the rateengine to calculate the rate.

Single or Multiple Rate ContributorsIf the rate definition is based on multiple values, you may need to create multiple rate contributors, as explained in this table.

Rate Number of Rate Contributors

A single earning or deduction, such assalary

One

A combination of earnings, such asthe sum of salary and car allowancepayments

Multiple, if salary and car allowance are stored as separate rate definitions

Note: All balances and element entries that contribute to a rate must use the same currency.

Example: Using multiple rate contributors, an hourly holiday pay rate could be based on adding together these values, whichare all paid at the end of the previous year.

• Salary

• Incentive bonus

• Seniority bonus

• Other changeable components of remuneration



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Configure Elements to Use Rate DefinitionsIf you create rate definitions that reference element input values, you must configure them for the different calculation rules,such as Flat Amount and Factor. This ensures that the values calculated by the rate are consistent with the values processedthrough payroll.

Do these element configuration steps if you're using the rate feature.

1. Create an element of type Recurring or Assignment level.2. Do not select the Multiple Entries Allowed check box.3. Select a special purpose for each element input value.

a. Primary Input Value for an Amount value.b. Factor for a Factor value.c. Periodicity for a Periodicity value.

Note: When creating elements for use in rate definitions, do not select Periodically. The Rate Definitionprocess is unable to convert rates with a periodicity of periodically to different frequencies such asannual, weekly, and daily.

4. If the flat amount is a full-time equivalent value, you must select Yes in the Default field for the Full-Time Equivalentinput value.

5. Create element eligibility.

Configure Elements to Create Rate Definitions for Flat Amount Calculations

1. From the Payroll Calculation work area, select the Manage Elements task.2. Click Create.3. Enter these values.

Field Value


Select your legislative data group

Primary Classification

Standard Earnings

Category

Standard

4. Click Continue.5. Enter a name, reporting name, and description.6. Enter the effective date.7. Answer the questions in the Duration and Standard Rules sections.

Note: Multiple entries are not allowed.

8. For the question, At which employment level should this element be attached?, select Assignment Level.9. For the question, Does this element recur each payroll period, or does it require explicit entry? select Recurring.

10. Click Next.11. In the Calculation Rules section, select Flat Amount and then click Next.12. Click Submit.



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13. On the Element Summary page under the Input Values folder, select Full-Time Equivalent.14. Check that these values exist.

Field Value or Check Box Status

Name

Full-Time Equivalent

Special Purpose

Full-Time Equivalent

Unit of Measure

Character

Displayed

Selected

Allow User Entry

Selected

Required

Deselected

Create a Database Item

Selected

Default

No

Lookup Type

PAY_ TMPLT_YES_NO

Configure Elements to Create Rate Definitions for Factor Calculations

1. Repeat steps 1 through 9 in the first procedure.2. In the Calculation Rules section, select Factor and then click Next.3. Click Submit.4. On the Element Summary page under the Input Values folder, select Pay Value.5. Check that these values exist.


Name

Pay Value

Special Purpose

Primary output value

Unit of Measure

Money

Displayed

Selected

Allow User Entry

Selected

Required

Deselected


Selected



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6. On the Element Summary page under the Input Values folder, select Factor.7. Check that the following fields and values exist.


Name

Factor

Special Purpose

Factor

Unit of Measure

Number

Displayed

Selected

Allow User Entry

Selected

Required

Deselected


Selected

Test Your Element ConfigurationYou're almost done. Now, to test your element configuration, follow these steps.

Note: These procedures are for payroll users only.

Step Page Do This Action

1

Payroll Dashboard

Find a payroll and an employee that you canuse for testing purposes.

2

Manage Elements

For the Flat Amount element, use the PayValue balance feed to enter an EligibleCompensation balance for the Percentageelement.

3

Manage Element Entries

Add the Flat Amount and Percentageelements to the employee as element entriesand enter input values.

4

Submit a Process or Report

Enter a suitable period for the payroll youselected in step 1.

5


Run the payroll.

6

View Payroll Process Results

Check if the payroll results are correct.



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Rates Defined by UnitsThe existing Global Payroll application calculates rates based on a number of criteria and conditions and returns the rate valuefor a periodicity specified, such as $50000 annually, or $7.25 hourly. We have a requirement to support rates that return avalue for a unit, rather than a periodicity. An example is piece work where a worker gets $1.50 for each widget made. Analternative use of unit-based rates could be a meal allowance rate or mileage rates where the rate paid varies based on thenumber of miles traveled and the type of vehicle.

Create Rate Definitions for LeaveIn this example, you calculate an employee's absence rate as of a particular date. The rate includes a combination of averagesalary and car allowance. The employee has an annual year-to-date salary of 26,000. The employee also receives an annualcar allowance payment of 2,000. The absence rate is 26,000 + 2,000 = 28,000. To provide a daily absence rate, you convertthis rate into a daily rate.

This table summarizes the key information you use in the example.


What elements do I need to createbefore I define the rate?

• Salary (assignment level) - This element contains the salary value to be retrieved by the ratedefinition. You must create it using the Flat Amount calculation rule.

• Car Allowance (assignment level) - This element contains the car allowance value to beretrieved by the rate definition. You must create it using the Flat Amount calculation rule.

• Absence - Use the Absence template to create the element. Enter Sickness as theclassification and Absence as the category.

Which balances hold the contributingvalues?

• Salary is fed by the Salary element.• Car Allowance is fed by the Car Allowance element.

Should I process contributor totals asfull-time equivalent amounts?

Yes

Create the Rate Definition1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Definitions task.



Task: Manage Rate Definitions2. In the Search Results section, click Create.3. Enter these values.

Field Value

Category

Derived Rate

Effective Start Date Select a date that is after the creation date of the objects that you are referencing



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Field Value



4. Click OK.5. In the Basic Details section, enter these values.

Field Value

Name

Absence Rate - Salary and Car Allowance

Short Name

ABS RATE - SAL/CAR ALLOW

6. In the Returned Rate Details section, select Daily as the value for the Periodicity field.7. Click the Contributor Rules tab and then select Yes as the value for the Process Contributor Total as FTE Amount

field.The balances referenced need to be populated using payroll runs for the periods covered by the balance dimensionor the rate definition will not generate a meaningful value.

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Balance as the Contributor Type and then click OK.3. On the Create Rate Contributors page, enter these values.

Field Value

Add or Subtract

Add

Balance Name

Regular Salary

Balance Dimension

Assignment Period to Date

Periodicity

Daily

4. Click Save and Continue.5. Click Create.6. Select Balance as the Contributor Type and then click OK.7. On the Create Rate Contributor page, enter these values.

Field Value

Add or Subtract

Add

Balance Name

Car Allowance

Balance Dimension

Assignment Period to Date



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Field Value

Periodicity

Daily

8. Click Save and Continue.9. Click Submit.

10. Assign an Absence element entry to the employee's assignment.

Note: You will then need to pass the absence entry through to payroll using the absence interface.

Related Topics• Integrating Absence Management with Global Payroll: Procedure

Create a Rate Definition for Basic SalaryIn this example, you create a primary rate for a basic salary. After you run the rate engine, the Manage Element Entries -Manage Person Details page displays the values for eligible employees.

Before you begin, create the salary element at the assignment level. This element contains the salary information to beretrieved by the rate definition. You can create it using the flat amount or factor calculation rule.

1. In the Payroll Administration work area, click the Manage Rate Definitions task.2. Click Create.3. Enter these values.

Field Value

Category

Element


Enter the current date.


Enter your legislative data group.

4. Click OK.5. Enter these values.

Fields Value

Storage Type

Amount

Element Name

Regular Salary

6. In the Returned Rate Details section, select the Base Rate and complete the fields, as shown in this table.

Field Value

Periodicity Annual

http://www.oracle.com/pls/topic/lookup?ctx=fa19c&id=0A861964463D6097E05362C3F00A93AD



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Field Value

Periodicity Conversion Formula

ANNUALIZED RATE CONVERSION

Currency

LDG Currency

7. Click Submit.

Create Rate Definitions for Overall SalaryIn this example, you create a rate definition for overall salary that includes multiple rate contributors.

You do these actions.

• Create the overall salary rate definition

• Add the regular salary rate contributor

• Add the car allowance rate contributor

This table summarizes the key decisions for your scenario.


What components of pay should beincluded in an employee's overall salary?

• Regular Salary• Car Allowance

Should I include all pay for car allowancein the overall salary?

No. Only include 50 percent of the amount paid for car allowance.

Note: The overall salary rate definition is a derived rate. To populate the Overall Salary check box, select a salaryelement in the Element name field. You then add the regular salary rate and car allowance rate contributors tothe rate definition. The rate contributors that you add should be elements that you select from the Rate Namefield on the Create Rate Contributor page.

Create the Overall Salary Rate Definition1. In the Payroll Administration work area, click the Manage Rate Definitions task.2. Click Create.3. Enter these values.

Field Value

Category

Derived Rate


Enter the current date.


Select your legislative data group.



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4. Click OK.5. Enter these values.

Field Value

Name

Overall Salary

Short Name

OVERALL_SAL

Element Name

Salary

6. In the Returned Rate Details section, enter these values.

Field Value

Periodicity

Weekly

Periodicity Conversion Formula

ANNUALIZED RATE CONVERSION

Currency

LDG Currency

Add the Regular Salary Rate Contributor1. In the Calculation section, click Create.2. Enter Base Rate in the Contributor Type field and then click OK.3. Enter these values.

Field Value

Add or Subtract

Add

Employment Level

Payroll Assignment

Periodicity

Weekly

4. Click Save and Continue.

Add the Car Allowance Rate Contributor1. In the Calculation section, click Create.2. Enter Rate Definition in the Contributor Type field and then click OK.3. Enter these values.

Field Value

Add or Subtract

Add

Rate Name

Car Allowance



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Field Value

Periodicity

Weekly

Factor Rule

Value

Factor Value

0.5


The Scope of Generate HCM Rates ExpandedThe original scope of the generate HCM rates process was limited to the calculation of salary rates. You can now use thegenerate HCM rates feature to calculate and store most types of rate definitions. The stored rate values can be used forreporting or retrieving for payroll calculation purposes

Generate HCM RatesSubmit the Generate HCM Rates flow to calculate and store rates for reporting purposes or inclusion in payroll calculations.Run this batch process frequently to ensure the stored rate values are accurate. After you run this process, you can report onthe rates using extracts. The user entity includes the database items that you can use in reports.

The application provides database items to support the rate batch process. These array database items return all ratesassociated with a payroll relationship record as of a specific date.

Note: The REPORTING_RATE_VALUES and REPORTING_RATE_PERIODICITIES database items return valuesbased on the return rate details defined on the rate definition. The other periodicity database items, such asREPORTING_RATE_QUARTERLY, return a rate that is converted to the specified periodicity.

The Generate HCM Rates process supports the database items listed in this table.

Database Items Description

REPORTING_ RATE_NAMES

Name of the rate

REPORTING_ RATE_VALUES

Value of the rate

REPORTING_ RATE_ PERIODICITIES

Periodicity of the rate

REPORTING_ RATE_ FTE_FLAGS

Full-time status of the rate

REPORTING_ RATE_ TERM_NUMBERS

Term number associated to the rate values

REPORTING_ RATE_ ASG_NUMBERS

Assignment number associated to the rate values



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Database Items Description

REPORTING_ RATE_WEEKLY

Weekly rate value

REPORTING_ RATE_MONTHLY

Monthly rate value

REPORTING_ RATE_ QUARTERLY

Quarterly rate value.

REPORTING_ RATE_YEARLY

Annual rate value

REPORTING_ RATE_ PT_WEEKLY

Part-time weekly rate value

REPORTING_ RATE_ PT_MONTHLY

Part-time monthly rate value

REPORTING_ RATE_ PT_QUARTERLY

Part-time quarterly rate value

REPORTING_ RATE_ PT_YEARLY

Part-time annual rate value

REPORTING_ RATE_ FT_WEEKLY

Full-time weekly rate value

REPORTING_ RATE_ FT_MONTHLY

Full-time monthly rate value

REPORTING_ RATE_ FT_QUARTERLY

Full-time quarterly rate value

REPORTING_ RATE_ FT_YEARLY

Full-time annual rate value

Run the process if these conditions apply.

• Changes to the data referenced by the rate, which may include element entries, grade rates, and values definedby criteria. This process only reports the rate values. It doesn't update, delete, create, or have any impact on theunderlying objects.

• Updates to rate definitions, such as when a new rate contributor is added or removed, or the rate is made inactive.

• Changes to employee records that impact their salary rates, such as changes to job or grade.

Note: You should run the process prior to any operation that depends on the values that are stored in the table.For example, if you have a rate based on seniority, values could change simply by the passage of time.

Let's look at the steps to run the process.

1. In the Payroll Administration work area, select the Submit a Process or Report task.2. Select your legislative data group.3. Select the Generate HCM Rates flow pattern.4. Enter these values for the Process Mode field.

Mode Description Accuracy

Fast

Uses the start and end date specified tocalculate the rate value. If the rate valueis the same for both dates, it determines

This is the quickest but least accuratemethod to calculate rate values. It missesany changes if a rate value goes up and



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Mode Description Accuracy

that the rate value is the same over theentire period. If the start and end valuesare different, this method then determinesa value in the middle and compares it withthe start and finish values to see where thechange occurred. This process repeatsuntil the date of the change is found. This isknown as a binary chop algorithm.

then back down to the same value that iscalculated at the start and end dates.

Full

Calculates the rate for every day betweenthe start and end date.

Slowest but most accurate method.

Periodic

This method works the same as Fast exceptyou can specify the number of days theprocess calculates rates between the startand end dates.

The accuracy of this method is half-waybetween Fast and Full.

5. Click Next.6. Select a flow submission.

Note: If you select Using a schedule, you must also select a frequency, such as once, weekly ordaily.

7. Click Next and then Submit.

Use the Rate Calculation FormulaOracle provides a rate calculation formula called RATE ENGINE. Applications and other formulas can call this formula tocalculate a rate using a rate definition.

To call this formula from a formula:

• Specify the name of the rate definition as an input.

• Optionally pass other formula inputs, such as periodicity. This periodicity overrides the return periodicity specified onthe rate definition.

The rate calculation formula returns a value and a periodicity.

Rates Used to Calculate Absences in PayrollYou can specify a rate for use in calculating an absence in an absence plan or an absence element. When processingabsence entries in a payroll run, the formula associated with the absence element uses the Rate Converter global formula toconvert rates. The formula checks for a rate in this sequence.

1. Absence plan2. Absence element3. Compensation salary element



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Absence PlanIn Oracle Fusion Absence Management, you can select a rate rule on the Entries and Balances tab of the Create AbsencePlan page. The rate rule calculates the units passed to payroll when you record an absence. You can select rate rules for theabsence payment, final disbursement, discretionary disbursement, and liability balance calculation.

For third-party absence providers, the application transfers the rate information and override rates in the XML file attached tothe Load Absence Batch process.

Absence ElementIf you don't specify rates in the absence plan, you can specify a rate when you create the absence elements. The type ofabsence information determines the rates you can select. For example, for plans where you transfer accrual balances andabsences, you can select different rates for these calculations.

• Absence payments

• Discretionary disbursement

• Final disbursement

• Liability balance rate

As best practice, specify a rate in either the plan or the element. If you specify in both, ensure the rate for the element is sameas the rate you selected in the corresponding plan.

Compensation Salary ElementIf the formula doesn't find a rate specified in the plan or the element, it uses the compensation salary element.

When you associate a payroll element to a salary basis, you specify an input value that holds the base pay on a worker'selement entry. The monetary amount or rate recorded in the element entry is the salary value in the worker's salaryinformation held on the assignment. If you specify a rate, the formula uses this rate if it doesn't find one defined in theabsence plan or absence element.

Related Topics

• Define Payroll Elements to Process Absences

FAQ for Rate Definitions

How does periodicity conversion work when there are multiplecontributors with different periodicities?Sometimes you may need to add a base salary, which is an annual figure, to a 13th month salary, which is a monthly figurethat is calculated from the annual base salary. The base salary in this example is held as an annual amount on an elemententry as 24,000. The 13th month salary is 2,000 (24000 / 12). If you add each of these contributors together, the sum of thecontributors is 26,000 (24,000 + 2,000).

At this point you have added an annual figure to a monthly figure, but you haven't indicated what the periodicity of the totalis in the Returned Rate Details section on the Create Rate Definitions page. If you select Annual in the Contributor Total



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Periodicity field, the sum of the contributors is 26,000. If you select Monthly, it converts the contributors to 312,000 (26,000 *12), which is now the annual figure.

Note: When the formula is called to calculate the rate, there is an option to override the return periodicity of therate.

How do I use the base rate feature to calculate a rate based onmultiple salary elements?Create a rate definition for each your salary elements. And ensure that you select the Base Rate check box in the BasicDetails section of the Create Rate Definition page. For example, if you have three salary elements, you need to create threerate definitions and associate each rate definition to one of your salary elements. All of your salary rate definitions must havethe Base Rate check box selected. Create an absence rate definition that has a category of Derived Rate. In the RateContributors section, click Create. On the Create Rate Contributor page, select Base Rate from the Contributor Typedrop-down list. This rate definition calculates a rate based on all of your salary rates. And all rate definitions are identified as abase rate.

You can use the base rate to identify each of your company's salary rate definitions. You can then use the derived rate tocalculate a salary rate derived from all of the salary elements. You can use the base rate and the derived rate in scenarioswhere your company has multiple salary elements and needs to calculate an hourly absence rate based on the salary rate ofan employee.

How do I compare rate definitions to ensure the highest rate is paid?Create a rate definition for your salary rate. Create a rate definition for your special pay rate, and then navigate to theReturned Rate Details section. From the Minimum Rate Rule list, select Rate Definition. Then, from the Minimum Valuelist, select the salary rate that you created.

You can use the Minimum Rate Rule option in the Returned Rate Details section in scenarios where your company needsto pay an employee either the salary rate or the special pay rate, whichever is greater.

Values Defined by Criteria

Values Defined by CriteriaEach calculation value definition requires you to specify one or more evaluation conditions that determine a particular value orrate. In cases where you specify many conditions, each condition is defined as a separate level and placed in priority order toproduce a tree structure.

You control the criteria that you enter and the resulting tree structure. In each branch of the tree you can have multipleevaluation conditions. If no conditions are met, the payroll process uses the value established for the default criteria that youset up. Each criterion and value, as well as the parent criteria definition, is stored as a calculation value definition.

Values defined by criteria comprise the components listed in the following table.



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Component Requirement

Criteria Definition (evaluation condition)

At least one but you can have many.

Default Criteria Definition

Should have at least one in most cases to cover all conditions. If you have a situation that where the criteria you set up covers all conditions, then you don't need adefault criteria definition.

Name

Refers to the name of the value definition. This is a mandatory field. This name must be uniqueacross all value definitions within a legislative data group. It's required to enable customers toidentify the parent record when creating the hierarchy through the HCM Data Loader.

Value Definition Group

Grouping that helps you manage value definitions. This is a mandatory field.

Retrieval Date

Determines whether the criteria definition uses the date earned or effective date to retrieveinformation. The default value is effective date.

Display Name

Refers to the name of the hierarchy record created within the context of the value definition. Thisname does not need to be unique and is displayed in the value by criteria hierarchy record. If youdon't enter a display name, the database item description or name displays.

Value Definitions

You can have multiple values included with a value definition. Each one is identified by the valueidentifier.

Database Items

One per criteria definition.

Operands

One per criteria definition.

Value Sets

Optional

Literal Values One per criteria definition.

If you use the In operand, you can enter multiple values.

Rate

Used when you are creating a calculation value. If you select Flat Rate or Incremental Rate as thecalculation type, you must enter a rate in this field.

Criteria Definitions and Evaluation ConditionsWithin the tree structure you create the criteria definitions that hold the actual values or rates. There are many types of valuesthat can be held, such as percentage, number, cash amount, or text.

You can also define a periodicity, which allows the value to be specified as a periodic value. Additionally, you can define avalue in a currency that's different from the default currency specified at the legislative data group.

The supported calculation types include:

• Flat Amount

• Flat Amount Times Multiplier

• Flat Calculation



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• Flat Rate

• Incremental Rate

• Number

• Rate Definition

• Standard Formula 1

• Standard Formula 2

Value DefinitionsAfter creating the criteria, you create value definitions to hold the values for each criterion. This is where you enter thecalculation types and rates. If you are using a calculation type that's a flat amount, flat amount times multiplier, or number,you can also specify a periodicity.

To view or modify the calculation values you entered, click the appropriate link to access the Manage Calculation ValueDefinition task. On this page you can change from and to values, override the calculation type, add new rows, change rates,and change currency. The From Value and To Value fields on this page are monetary.

You can capture multiple values for a single criterion if you specify a unique value identifier for each value. The tree structureshows this identifier instead of the value definition name. For example you may want to pay employees bonuses at differentrates based on their annual salaries. In this case you can use value identifiers to define different rates for each salary rangeusing the From Value and To Value fields.

Database ItemsEach condition references a database item to identify where the value is used. It also determines the data type of the value,which is text, number, or date. Define conditions using predefined database items or the dynamically created database itemsthat are generated when certain data is created, such as balances and elements.

Here is a partial list of database items that you can reference in the new hire flow:

• Grade

• Job

• Job Code

• BU (Business Unit)

• Location

• Department

• Worker Category

• Assignment Category

• Employee Category

• Salary Basis

• Legal Employer

• Period of Service (Seniority)

• Number of Dependents (between the ages 3 and 18)

Note: You can only reference database items for objects that are defined in the new hire flow, which are usedto calculate salary basis. If you reference other types of database items, the process either returns zero or it usesthe default criteria.



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OperandsYou use operands when you're creating criteria. You can specify whether the value defined by the database item should beequal to, greater than, less than, greater than or equal to, or less than or equal to the literal value.

To capture multiple values for the same criteria, use the In operand. For example if you want to give employees that work inCity 1 and City 2 the same bonus, you can create a single evaluation condition for both cities using the In operand.

Value SetsSpecify a value set to provide a dynamic list of values from which you can select an entry. This option is available for inputvalues that provide text only.

Literal ValuesIf you specify a value set, you can select an entry from a list of values, which is based on the selected value. If you leave theValue Set field blank, you can enter any type of information that is appropriate for the value definition that you are creating.

Examples to Manage Values Defined by CriteriaUse the Manage Values Defined by Criteria task to calculate or retrieve values based on one or more conditions. Youcan use values defined by criteria in rate definitions. You can also use value by criteria definitions in any formula used forvalidation.

If you use a third-party payroll product and want to extract the salary rate details, use the Generate HCM Rates processto calculate rate values. The Generate HCM Rates process is primarily used to calculate derived rate values, such as thosewhich sum multiple salary components. However, it is also used to process primary rates, as you may define rate definitionswhich calculate values that are different from those stored on an element entry.

Note: The values that the Generate HCM Rates process creates are stored on a rates table. You can extractthis information using the HCM Extract tool to send to your third-party payroll providers.

Use these examples to understand how you can calculate values defined by criteria for these elements of payroll.

Annual SalariesYou can calculate annual salaries for employees based on their position. For example:

• If the employee is a Consultant, pay 45,000.

• If the employee is a Senior Consultant, pay 55,000.

• If the employee is a Principal Consultant, pay 65,000.

Bonus PaymentsYou can chose to calculate bonus payments for employees that are weighted by their location. A more complicated scenariowould be to pay bonuses based on an employee's department, years of service, and annual salary.

• To weight a bonus payment by location, you could set up criteria as follows:

◦ For employees working in London, pay a 15 percent bonus.

◦ For employees working in Manchester, pay a 13 percent bonus.

◦ For employees working in Southampton, pay a 9 percent bonus.



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◦ For all other employees, pay a 5 percent bonus.

• To pay a bonus based on department, years of service, and annual salary, you could set up criteria as follows:

◦ If an employee working in sales has less than or equal to 5 years of service and an annual salary over 45,000,pay a 2,000 bonus.

◦ If an employee working in sales has less than or equal to 10 years of service and an annual salary over45,000, pay a 5,000 bonus.

◦ If an employee working in sales has greater than 10 years of service and an annual salary over 45,000, pay a9,000 bonus.

◦ For all other employees working in sales, pay a 7 percent bonus based on their annual salary.

Pension ContributionsYour pension plan may have rules that limit contributions based on an employee's annual salary. For example, in this scenarioyou could set up criteria as follows:

• Employees making less than or equal to 25,000, limit maximum contributions to 2,500.



• Employees making greater than 100,000, limit maximum contributions to 14 percent of pay.

Hourly RatesIn the United States, labor law mandates to pay a higher rate when a locality's minimum wage is greater than the state orfederal minimum wage. To fulfill this requirement, use the Manage Values Defined by Criteria task to set up pay rates that aworker's state, county, and profession determines.

In this example, you could set up criteria for these scenarios:

• Pay carpenters working in City 1 in County 1 greater than or equal to the rate of 15 per hour.



• For all other workers, pay rate of 12 USD per hour, the prevailing state wage for laborers.

Use Values Defined by Criteria to Pay Bonuses Based on Age andLocationThis example demonstrates how to create criteria to pay employee bonuses at different rates based on age and location. Thistable summarizes the key decisions for this scenario:

Decisions to Consider In this Example

What ages and rates should be used?

• Less than age 25, pay 10 percent• Less than age 35, pay 14 percent to City 1 employees• Less than age 35, pay 16 percent to City 2 employees• All other locations and ages greater than 35, pay 5 percent

What locations should be used todetermine bonus rates?

• City 1



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• City 2

Are there any special conditions thatshould be added?

Yes. In City 2 the general manager wants to pay a flat amount of 15,000 for all employees under theage of 35 who make over 100,000 per year.

In this example, we would perform these actions:

• Create the bonus rate criteria definition

• Create age criteria

• Create location criteria for age group 2

• Create a calculation value definition for age group 1

• Create calculation value definitions for locations

• Create calculation value definitions for default criteria definitions

• Modify evaluation conditions

Before You BeginIn this example, HRX_US_REP_LOCATION is used as the value set for the entry of different locations. If you don't have anequivalent value set, you may need to create one.

Create the Bonus Rate Criteria Definition1. In the Payroll Administration work area, click the Manage Values Defined by Criteria task.

In the Setup and Maintenance work area, go to these tasks:



Task: Manage Values Defined by Criteria2. Click Create.3. Complete these fields as shown in this table.

Field Value

Name

Bonus Rate


1/1/15



4. Select the Create new value definition group radio button.5. Enter Bonus in the New Value Definition Group field.6. Enter Flat Rate in the Default Calculation Type field.7. Click OK.



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Create Age Criteria1. Select the row with the Bonus Rate criteria definition.2. Click New.3. Select Criteria and click OK.4. For each criteria definition you create, complete the fields as shown in this table.

Field Age less than 25 Age less than 35

Calculation Value Definition Name

Bonus Rate Age Group 1

Bonus Rate Age Group 2


Bonus

Bonus

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

PER_ PER_ PERSON_AGE

PER_ PER_ PERSON_AGE

Operand

<

<

Literal Value

25

35

5. Click OK each time you create a criteria definition.6. To create a default group for the age criteria, repeat steps 1 through 3.7. Complete the fields as shown in this table.

Field Value


Bonus Rate Age Group Default


Bonus

Retrieval Date

Date Earned

8. Select the Default Criteria check box and click OK.

Create the Location Criteria for Age Group 21. Select the row with the Person Age < 35 criteria definition.2. Click New.3. Select Criteria and click OK.4. For each criteria definition you create, complete the fields as shown in this table.

Field City 1 City 2


Bonus Range Age Group 2 Location 1

Bonus Range Age Group 2 Location 2

Value Definition Group Bonus Bonus



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Field City 1 City 2

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

PER_ ASG_ LOCATION_ID

PER_ ASG_ LOCATION_ID

Display Name

Location

Location

Operand

=

=

Value Set

HRX_ US_ REP_LOCATION

HRX_ US_ REP_LOCATION

Literal Value

City 1

City 2

5. Click OK each time you create a criteria definition.6. To create a default group for the location criteria, repeat steps 1 through 3.7. Complete the fields as shown in this table.

Field Value


Bonus Rate Age Group 2 Location Default Rate


Bonus

Retrieval Date

Date Earned

8. Select the Default Criteria check box and click OK.

Create a Calculation Value Definition for Age Group 11. Select the row with the Person Age < 25 criteria definition.2. Click New.3. Select Value and click OK.4. Complete the fields as shown in this table.

Field Value


Bonus Rate Age Group 1 Rate


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate



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Field Value

Rate

.10

5. Click OK.

Create Calculation Value Definitions for Locations1. Select the row with the Location = City 1 criteria definition.2. Click New.3. Select Value and click OK.4. Complete the fields as shown in this table.

Field Value


Bonus Rate Age Group 2 Location Rate 1


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.14

5. Click OK.6. Select the row with the Location = City 2 criteria definition.7. Click New.8. Select Value and click OK.9. Complete the fields as shown in this table.

Field Value


Bonus Rate Age Group 2 Location Rate 2


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.16

10. Click OK.

Create Value Definitions for the Default Criteria Definitions1. Under the location criteria definition, select the row with the Default Criteria definition.2. Click New.3. Select Value and click OK.



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4. Complete the fields as shown in this table.

Field Value


Age Group Location Default Rate


Bonus

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.05

5. Click OK.6. To create a calculation value definition for employees that don't meet any criteria, select the row with the last Default

Criteria definition.7. Repeat the steps described in this procedure except for the Calculation Value Definition Name field. Enter Bonus

Default Rate instead.8. Click OK.

Modify Evaluation Conditions1. To modify the evaluation conditions for the City 2 location, click the Bonus Rate Age Group 2 Location Rate 2 link.2. Scroll down to the Calculation Values section.3. Enter 100,000 in the To Value field.4. Click Add Row.5. Enter 100,000.01 in the From Value field and 999,999,999,999 in the To Value field.

From and to values are monetary, unless you are using a database item.6. Select Flat Amount in the Calculation Type Override field.7. Enter 15,000 in the Flat Amount field.8. Click OK and Submit.

Use Values Defined by Criteria to Limit Pension ContributionsThis example demonstrates how to create criteria to limit pension contributions based on annual salary amounts. Thefollowing table summarizes the key decisions for this scenario.


What salaries and contribution limitsshould be used?

• Salary less than or equal to 50,000, limit pension contribution to 5,000• Salary less than or equal to 100,000, limit pension contribution to 10,000• All other salary amounts, limit pension contribution to 17 percent of annual salary

This example:

1. Creates the pension limits criteria definition2. Creates salary criteria3. Creates the value definition for salary amount 1



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4. Creates the value definition for salary amount 25. Creates the value definition for the default criteria definition

Creating the Pension Limits Criteria Definition1. In the Payroll Administration work area, click the Manage Values Defined by Criteria task.

In the Setup and Maintenance work area, go to the following:



Task: Compensation work

2. Click Create.3. Complete the fields, as shown in this table.

Field Value

Name

Pension Limits


1/1/15



4. Select the Use existing value definition group radio button.5. Select Limit Rules in the Value Definition Group field.6. Select Flat Amount in the Default Calculation Type field.7. Click OK.

Creating Salary Criteria1. Select the row with the Pension Limits criteria definition.2. Click New.3. Select Criteria and then click OK.4. For each criteria definition you create, complete the fields as shown in this table.

Field Salary less than or equal to 50,000 Salary less than or equal to 100,000


Salary less than or equal to 50,000

Salary less than or equal to 100,000


Limit Rules

Limit Rules

Retrieval Date

Date Earned

Date Earned

Sequence

1

2

Database Item Name

CMP_ ASSIGNMENT_ SALARY_AMOUNT

CMP_ ASSIGNMENT_ SALARY_AMOUNT

Operand

< =

< =



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Field Salary less than or equal to 50,000 Salary less than or equal to 100,000

Literal Value

50,000

100,000

5. Click OK each time you create a new criteria definition.6. To create a default group for the salary criteria, repeat steps 1 to 3.7. Complete the fields, as shown in this table.

Field Value


Salary Greater Than 100,000


Limit Rules

Retrieval Date

Date Earned

8. Select the Default Criteria check box and then click OK.

Creating the Value Definition for Salary Amount 11. Select the row with the Salary Amount < = 50,000 criteria definition.2. Click New.3. Select Value and then click OK.4. Complete the fields, as shown in this table.

Field Value


Contribution Limits 1


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Amount

Periodicity

Annually

Unit of Measure

Money

Currency

LDG Currency

Flat Amount

5,000

5. Click OK.

Creating the Value Definition for Salary Amount 21. Select the row with the Salary Amount < = 100,000 criteria definition.2. Click New.



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3. Select Value and then click OK.4. Complete the fields, as shown in this table.

Field Value


Contribution Limits 2


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Amount

Periodicity

Annually

Unit of Measure

Money

Currency

LDG Currency

Flat Amount

10,000

5. Click OK.

Creating the Value Definitions for the Default Criteria Definition1. Select the row with the Default Criteria definition.2. Click New.3. Select Value and then click OK.4. Complete the fields, as shown in this table.

Field Value


Salary Greater Than 100,000


Limit Rules

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

.17

5. Click OK.



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Example of Calculating Location Allowance Rates Based on Locationand Hire DateLet's look at an example that shows how to calculate a location allowance based on the hire date and location of anemployee. In this example, an employee who's hired in California or Colorado before 01-JAN-19 is eligible to locationallowance payments calculated at 15% of the salary. An employee hired in these states on or after 01-JAN-19 isn't eligible toreceive the location allowance.

Create the Location Allowance Values by Criteria1. In the Payroll Calculation work area, click the Manage Values Defined by Criteria task.2. Click Create.3. Complete these fields:

Field Value

Name

Location Allowance Rate


Enter a valid date



4. Select the Create new value definition group option.5. Enter Location Allowance in the New Value Definition Group field.6. Enter Flat Rate in the Default Calculation Type field.7. Click OK.

Create Criteria for Each Location Eligible for Payment1. Select the row with the Housing Allowance Rate criteria definition.2. Click New.3. Select Criteria and then click OK.4. For each criteria definition you create, complete these fields:

Field Value


Location


Location Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.

Database Item Name

Select a database item name.

Operand =



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Field Value

Literal Value

California

5. Click OK each time you create a new criteria definition.6. To create a default group for each location criteria, repeat steps 1 to 3.7. Complete these fields:

Field Value


Location Allowance Default Rate


Location Allowance

Retrieval Date

Date Earned


Create Hire Date Rule Criteria for Each Location1. Select the row with the Location = California criteria definition.2. Click New.3. Select Criteria and then click OK.4. For each criteria definition you create, complete these fields:

Field Value


Hire Date Rule for California


Location Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.

Database Item Name


Operand

<

Literal Value

01-JAN-2019

5. Click OK each time you create a new criteria definition.6. To create a default group for each location criteria, repeat steps 1 to 3.7. Complete these fields:

Field Value

Calculation Value Definition Name Hire Date Rule for California Default Rate



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Field Value


Location Allowance

Retrieval Date

Date Earned


Create Value Definitions for the Hire Date Rule for Each Location1. Select the row with the Hire Date Rule for California criteria definition.2. Click New.3. Select Value and then click OK.4. Complete these fields:

Field Value


Location Allowance for California


Location Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.15

5. Click OK.

Create Value Definitions for the Default Criteria Definitions1. Under the job criteria definition, select the row with the Default Criteria definition.2. Click New.3. Select Value and then click OK.4. Complete these fields:

Field Value


Housing Allowance Default Rate


Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.0



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5. Click OK.

Create the Rate Definition for Location Allowance1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Definitions task.2. In the Search Results section, click Create.3. Complete these fields.

Field Value

Category

Derived Rate


Select a date that's after the creation date of the objects that you're referencing



4. Click OK.5. In the Basic Details section on the Create Rate Definition page, complete these fields:

Field Value

Name

Enter the name for your rate definition. For example, Rate - Location Allowance.

Short Name

Enter a short name.

6. In the Returned Rate Details section, complete these fields:

Field Value

Factor Rule

Value by Criteria

Name

Select the value for the housing allowance that you created using values defined by criteria. Forexample, Location Allowance Rate.

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Rate Definition as the Contributor Type and then click OK.3. On the Create Rate Contributors page, complete these fields:

Field Value

Add or Subtract

Add

Rate Name

Select your salary rate definition.

4. Click Save and Continue.



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5. Click Submit.

Example of Using Rate Definitions to Calculate Housing AllowanceBased on a Percentage of Salary and Limited to a Maximum ValueLet's look at an example that shows how to calculate a housing allowance rate that's limited to a maximum of $10,00 peryear. In this example, housing allowance is a percentage of the salary. The percentage value is derived based on the job ofthe employee.

You can choose to calculate housing allowance rates with a job criteria with a maximum rate limit. Use the Manage ValuesDefined by Criteria task to define the conditions and housing allowance values. Use the Manage Rate Definitions task toassociate the values defined by criteria to the housing allowance rate and apply the maximum limit rule.

In this example, you calculate housing allowance payments based on the type of the job. You first create values by criteria forhousing allowance. Then, you define criteria for each type of job.

You can also calculate the housing allowance payments based on a percentage of salary. You can do so by first enteringvalues for each of the job criteria conditions. For example, if the job 'Help desk Manager' is eligible for 10% of the salary,enter a rate value of 0.10. Specify the value for the default criteria as 0.00. This ensures that you don't pay the allowance toemployees who don't meet the job criteria.

Create the Housing Allowance Values by Criteria1. In the Payroll Calculation work area, click the Manage Values Defined by Criteria task.2. Click Create.3. Complete these fields:

Field Value

Name

Housing Allowance Rate


Enter a valid date



4. Select the Create new value definition group option.5. Enter Housing Allowance in the New Value Definition Group field.6. Enter Flat Rate in the Default Calculation Type field.7. Click OK.

Create Criteria for Each Job Type1. Select the row with the Housing Allowance Rate criteria definition.2. Click New.3. Select Criteria and then click OK.4. For each criteria definition you create, complete these fields:

Field Value


Job



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Field Value


Housing Allowance

Retrieval Date

Enter a valid date.

Sequence

Select a sequence.

Database Item Name


Operand

=

Literal Value

Help Desk Manager

5. Click OK each time you create a new criteria definition.6. To create a default group for the job criteria, repeat steps 1 to 3.7. Complete these fields:

Field Value




Housing Allowance

Retrieval Date

Date Earned


Create Value Definitions for Each Job Type1. Select the row with the Job = Help Desk Manager criteria definition.2. Click New.3. Select Value and then click OK.4. Complete the fields, as shown in this table.

Field Value


Help Desk Manager Rate


Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.10

5. Click OK.



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Create Value Definitions for the Default Criteria Definitions1. Under the job criteria definition, select the row with the Default Criteria definition.2. Click New.3. Select Value and then click OK.4. Complete these fields:

Field Value




Housing Allowance

Retrieval Date

Date Earned

Calculation Type

Flat Rate

Rate

0.0

5. Click OK.

Create the Rate Definition for Housing Allowance1. In the Payroll Calculation or Setup and Maintenance work area, select the Manage Rate Definitions task.2. In the Search Results section, click Create.3. Complete these fields.

Field Value

Category

Derived Rate


Select a date that's after the creation date of the objects that you're referencing



4. Click OK.5. In the Basic Details section on the Create Rate Definition page, complete these fields:

Field Value

Name

Enter the name for your rate definition. For example, Rate - Housing Allowance.

Short Name

Enter a short name.

6. In the Returned Rate Details section, complete these fields:

Field Value

Factor Rule Value by Criteria



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Field Value

Name

Select the value for the housing allowance that you created using values defined by criteria. Forexample, Housing Allowance Rate.

Maximum Rate Rule

Value

Maximum Value

10,000

Create Rate Contributors1. In the Rate Contributors section, click Create.2. Select Rate Definition as the Contributor Type and then click OK.3. On the Create Rate Contributors page, complete these fields:

Field Value

Add or Subtract

Add

Rate Name

Select your salary rate definition.


FAQ for Values Defined by Criteria

Does the order in which I add criteria definitions matter?Yes. Each criteria definition that you add is defined as a separate level and placed in priority order. The order is used toproduce a tree structure, which affects processing and the value that is returned.

For example, if the first criteria definition has the condition of salary greater than 0, and the next criteria definition in thesequence has the condition of salary greater than 100,000, all salaries would meet the first condition and there would be noresults for the second condition. To fix this situation, you would reverse the order of the criteria definitions where the conditiongreater than 100,000 is first in the sequence.

You can change the sequence of the criteria definitions at any time to suit your business needs and fix processing problems.

How do I define minimum or maximum rules for a values by criteriarate?Create a value by criteria definition. Create a rate definition that has a category of Value by Criteria and associate therate definition to the value by criteria definition. Create a rate definition that has a category of Derived Rate. Create a ratecontributor with a contributor type of Rate Definition, and then select the values by criteria rate definition. You can now



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define return rate rules for your derived rate, such as a minimum or maximum values. These return rate rules will be applied tothe values by criteria rate.

Payroll Event Groups

Payroll Event Groups: ExplainedA payroll event group defines the types of data changes that trigger retroactive event notifications or prorated calculation of aperson's earnings or deductions.

There are two types of payroll event groups:

• Proration

• Retroactive

ProrationUsing proration, you can calculate proportionate earnings and deduction amounts whenever payroll-relevant data changesduring a payroll period.

For example, you can calculate proportionate earnings and deduction amounts if:

• A person joins or leaves an organization in the middle of a payroll period

• A person's pay rate changes during a payroll period

If you want to prorate an element, such as basic salary, assign a proration event group to the element with proration pointsthat affect a person's salary. You can use the predefined event group, or create a new one. When you create an event group,you select the events that activate proration calculation, such as changes to:

• Hourly or annual pay rates

• Working hours

• Allowances or deductions

• Assignment changes, such as grade or position

Tip: You can only select events that represent changes to element entries, calculation cards, calculation valuedefinitions and assignments.

RetroactiveRetroactive processing ensures that your payroll run for the current period reflects any backdated payments and deductionsfrom previous payroll periods. A retroactive event group defines the types of changes that trigger a retroactive eventnotification.

Within a retroactive event group, select the events that produce notifications if a backdated change occurs. Specify the entity,update type, and attribute, as shown in the examples provided in the following table.

Entity Update Type Attribute

Element Entry Value

Correction

SCREEN_ ENTRY_VALUE



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Entity Update Type Attribute

Element Entry

Update

EFFECTIVE_ START_DATE

Element Entry

Update

EFFECTIVE_ END_DATE

Element Entry

Logical Date Change

Element Entry

Insert

Element Entry

Delete Changes

Related Topics• How can I create an element for retroactive processing

Element Proration

Set up Element ProrationProration calculates proportionate amounts for recurring elements when payroll-relevant data changes during a payroll period.This could include a person joining the enterprise or a mid-period pay increase. Proration creates two payroll run results. Thefirst run result is for the payroll period up to the day before the event. The second one is from the date of the event to the endof the period. When you create an element, you specify its proration event group and the calculation method.

Proration rate conversion rules give you the flexibility of specifying a different rule than that used for periodicity. For exampleyou prorate based on calendar days when using work units for conversion.

To set up element proration, you:

• Review the predefined proration event group to ensure that it includes changes you want to track. You can optionallyupdate the event group or create a new group.

• Create an element and enable proration processing for an element.

Reviewing the Predefined Event GroupWhen you create or update a recurring element, you can make it subject to proration.

1. In the Payroll Calculation work area, start the Manage Event Groups task.2. Search for the predefined event group: Entry Changes for Proration.3. Review the types of changes that automatically trigger proration for the elements associated with this event group.

You can edit this group or create a new event group for the element, if required. For example, you might want to addchanges to calculation cards or assignments.

Enabling Proration Processing for an ElementTo enable proration:

1. Start the Manage Elements task, and click Create.



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2. On the Create Element: Additional Details page, select Yes for the following question: Is this element subject toproration?

3. Select the predefined event group (Entry Changes for Proration) or a new group that you created.4. Select a Proration Units and Proration Rate Conversion Rule.5. Select a Proration Conversion Rule formula.

Note: If the predefined conversion rules don't meet your requirements, you can create a user-defined formula.

Related Topics

• Create and Assign a Work Schedule

Create Conversion Formulas for ProrationThe predefined proration formula GLB_EARN_PRORATION controls how the payroll calculation prorates an element entrywhen it encounters an event. This could happen when there is a change to an element entry value. You can copy and edit apredefined proration formula to modify the calculation. You then select the user-defined formula as the proration formula foryour element.

Create a FormulaAs a prerequisite, create a modified rate conversion before you create its related proration conversion rule. Follow these rulesto write a formula:

1. Select the formula type called Payroll Run Proration.2. Search for and copy the predefined Rate Conversion Proration formula.3. Add the suffix underscore PRORATE to the name (_PRORATE).4. Update the formula inputs:

◦ PRORATE_START_DATE (date)

◦ PRORATE_END_DATE (date)

◦ SOURCE_PERIODICITY (text)

◦ DAYS_WORKED (number)

◦ RATE_CONV_FORMULA (text)

◦ HOURS_WORKED (number)

◦ IN_AMOUNT (number)

◦ UNIT_TYPE (text)

◦ PRORATION_UNIT (text)

5. Add the formula outputs for the element input values.6. Save, submit, and compile the formula.

Some countries or territories supply predefined proration formulas that you can use as the basis for your modified version.

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How Prorated Earnings and Deductions are CalculatedYou can select from a number of different proration conversion rules to calculate standard or supplemental earnings. Youselect the proration conversion rule when you create an earnings or deduction element using the Manage Elements task inthe Payroll Calculation work area. You can calculate prorated earnings based on calendar days or work schedules.

This topic covers:

• How deductions are calculated

• How prorated earnings are calculated

• Examples of earnings calculation based on calendar days

• Example of earnings calculation based on work schedule

How Deductions Are CalculatedTypically, you don't prorate deductions, such as deductions based on a percentage of earnings. You might prorate fixedrate deductions, such as voluntary deduction for a fitness center membership. In most cases, you use the predefinedglobal proration formula for deductions (GLB_DEDN_PRORATION). For this formula the proration value is the periodic valuemultiplied by the number of calendar days in the proration period. This figure is then divided by the number of calendar daysin the payroll period.

How Prorated Earnings are CalculatedCreating a recurring earnings element automatically associates it with a predefined proration formula(GLB_EARN_PRORATION). The proration formula determines how to prorate earnings in the proration period based on theproration calculation method you select.

As a guideline the global formula doesn't prorate:

• Nonrecurring elements

• Earnings elements with a calculation rule of unit multiplied by rate, if rate and hours are entered in the element entry

Note: Some predefined legislations provide a different default proration formula and rules.

These examples show how proration calculations are performed on earnings calculations based on:

• Calendar days

• Work schedules

Example: Earnings Calculation Based on Calendar DaysThe formula calculates proration results as shown in the following table.

Proration Conversion Rule and ProrationUnits

Proration Calculation

Standard Rate Annualized rule Daily proration units

Calendar days in proration period multiplied by annual pay and divided by annual calendar days



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Example:

1. You assign a person to a monthlypayroll for a salary basis of25,000.

2. You update the salary on 10December, 2013 to 30,000.

3. You calculate the Decembermonthly payroll.

4. The proration formula calculates2 proration periods with 9calendar days in the firstproration period, and 22 in thesecond period.

(9 * 25000) / 365 + (22 / * 30000) / 365 = 616.44 + 1808.22 = 2424.66

Standard Rate Daily rule Daily proration units

Total pay divided by calendar days in the payroll period and multiplied by calendar days in theproration period.

Example:

1. You hire a person to a weeklypayroll in the middle of the payrollperiod.

2. The employee works 3 calendardays and receives a locationallowance of 500.

3. The proration formula calculatesthe employee's locationallowance for the 3 days.

(500 / 7) * 3 = 214.29

Example: Earnings Calculation Based on Work ScheduleThe formula calculates proration results as shown in the following table. If no working hours are defined, the proration formulachecks the assignment definition for the number of working hours and frequency. If no information is found, the formula uses40 as the number of working hours and 5 as the number of days for the work week.



Periodic Work Schedule RateAnnualized rule Workday proration units

Work schedule days in proration period multiplied by annual pay and divided by 260 days, thedefault number of annual working days. A day in a work schedule is a 24 hour period.

Example:

1. You hire a person to a monthlypayroll for an annual salary basisof 25,000.

2. The employee works 5 days aweek Monday through Friday.

(6 * 25000) / 260 + (16 * 30000) / 260 = 576.92 + 1846.15 = 2423.07



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3. You increase the monthly salaryto 30,000 effective 10 December,2013.

4. You calculate the Decembermonthly payroll.

5. The proration formula calculates6 working days from 1stDecember to 9th December,and 16 working days from 10thDecember to 31st December.

Periodic Work Schedule RateAnnualized rule Hourly proration units

Work schedule hours in proration period multiplied by the annual pay and divided by 2080, thedefault number of annual working hours.

Example:

1. An employee assigned to aweekly payroll receives an annualsalary basis of 25,000.

2. You increase the salary to 30,000effective 10 December, 2013.

3. The employee works 10 hoursa day from 9 December to 12December.

4. You calculate the weekly payrollfor the week 8 December to 14December.

5. The proration formula calculates2 proration periods, with 10working hours for the first period,and 30 for the second period.

(10 * 25000) / 2080 + (30 * 30000) / 2080 = 120.19 + 432.69 = 552.88

Periodicity

Periodicity ConversionRate conversion formulas convert amounts to different periodicities for payroll calculations. The following calculations use rateconversion formulas:

• Proration

• Hours multiplied by rates calculation of an element run result

• Rates based on rate definitions

Predefined PeriodsThe following are the predefined periods for use when setting periodicity.



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If these values don't meet your requirements, you can copy a predefined rate conversion formula and edit its periodicityvalues.

Periodicity Valid for Payroll Periods Number of Periods per Year

Annually

Yes

1

Bimonthly

Yes

6

Biweekly

Yes

26

Calendar Monthly

Yes

12

Daily

No

365

Hourly

No

2920 (365 days multiplied by 8 hours)

Lunar Month

Yes

13

Periodically

No

Payroll frequency determines the number ofperiods to use in the rate conversion.

Quarterly

Yes

4

Semiannually

Yes

2

Semimonthly

Yes

24

Workday

No

260

Weekly

Yes

52

Work Hour

No

2080 (260 days multiplied by 8 hours)

Defining PeriodicityYou can define periodicity in the following ways:

Object Task Description

Elements

Manage Elements

The Periodicity input value specifies thefrequency of the element value. For example, salary element entries thathold annual salary values have an annualperiodicity.



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Object Task Description

Payrolls

Manage Payroll Definitions Period Type specifies the number of payroll

periods.

For example, the Monthly Lunar period typeincludes 13 payroll periods.

Rates

Manage Rate Definitions Rate definition can specify the following

periodicities:

• Return periodicity of the rate• Periodicity of each rate contributor• Periodicity of the calculated sum of

the rate contributors

Rate Conversion FormulasRate conversion formulas change the periodicity of an amount.

For example, the Standard Rate Annualized conversion formula can convert an annual salary amount to a weekly amount.

The following table describes the predefined formulas.

Rate Conversion Rule Description Example

Standard Rate Annualized

Calculates the annual rate using the inputperiodicity and converts the amount to anoutput periodicity and rate. This rule uses default values, such as 2080hours or 260 working days, to calculate theannual rate. You select the day or hourlybasis during element definition.

To convert a weekly amount to asemimonthly periodicity, the formula: 1. Multiplies the weekly amount by 52. 2. Divides the result by 24.

Standard Rate Daily

Calculates the daily rate using the inputperiodicity and converts the amount to anoutput periodicity and rate. This rule uses a default value, such as 260working days a year, to calculate the dailyrate.

To convert an annual amount to dailyperiodicity, the formula: 1. Divides the annual amount by 365. 2. Multiplies the result by the number of daysin the payroll period.

Standard Working Hours Rate Annualized

Uses the employee's standard working hoursto convert the monetary value and workinghours to an annual value before calculatingthe rate.

The employee works 40 hours a week with amonthly salary of 1000: ((1000*12)/(40. 00*52) = 5.77 an hour

Assignment Working Hours Rate Annualized

Uses the employee's working hours toconvert the monetary value and workinghours to an annual value before calculatingthe rate.

The employee works 40 hours a week, with37.5 standard working hours a week, and amonthly salary of 1000: ((1000*12)/(37. 50*52) = 6.15 an hour



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Rate Conversion Rule Description Example

Periodic Work Schedule Rate Annualized

Uses the employee's work schedule forthe payroll period for daily and hourlyconversions.

For an employee:

• With a monthly salary of 1000• Assigned a monthly payroll

The formula checks the work scheduledetails for the month.

For a daily conversion:

1000 a month/20 days in the month = 50

Note: For compensationcalculations where the employeeis not assigned a payroll, the rateis calculated using the weeklyrate calculation. The amount isconverted to an annual figureand divided by the numberof days or hours in that weekbased on the work schedule.

The impact of rate conversion rule is summarized below:

Periodicity: The conversion rule for periodicity applies to Flat Amount, Hours * Rate, and Days * Rate calculation rules. Youcan override the periodicity used as the default for the element definition at the element entry level.

Work Units: The Work Units conversion rule applies only to flat amount calculation rules for standard and supplementalearnings elements. The selection of which work units to use in reports and payslips determines the conversion calculation.The application creates the element input values using the default values of the rate conversion formulas.

For example, the following table illustrates how the payroll process determines the standard work units for any given payperiod:

Work Units Selected Example

Hours

2080/24 = 86.67

Days

260/24 = 10.83

None

No input values are created

Proration: The element template includes a new question for proration units. Proration rate conversion rules replace theprevious proration methods in the element template. You have greater flexibility, for example, to base proration on calendardays when using work units for conversion.

Note: If the conversion rules do not meet your requirements, you can copy and edit the rules using the ManageFast Formulas task in the Payroll Calculation work area.



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Related Topics

• Configure Periodicity Conversion Rules

• Overview of Using Formulas

Retroactive Pay

How Retroactive Pay Is CalculatedRetroactive pay is the recalculation of prior payroll results due to changes that occur after the original calculation was run.To process retroactive pay, run the Recalculate Payroll for Retroactive Changes process. This process creates retroactiveelement entries based on retroactive events. You can view automatically-created retroactive events or create them manually.Only elements that are set up to include a retroactive event group can have retroactive element entries.

Examples of prior period adjustments that could trigger a retroactive event are:

• An employee receives a pay award that is backdated to a previous pay period.

• The payroll department makes a backdated correction for an error that occurred in a previous pay period.

Settings That Affect Retroactive PayTo enable retroactive processing of an element:

1. On the Manage Event Groups page, review the types of changes that automatically trigger a retroactive notificationfor the predefined event group, which is called Entry Changes for Retro. You can edit this group or create a newevent group for the element, if required.

2. On the Create Element: Additional Details page, select Yes for the following questions:

◦ Is this element subject to proration?

◦ Is this element subject to retroactive changes?

3. Select the predefined event group or a new group that you have created.

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This figure illustrates retroactive setup.

Retroactive Setup

Payroll Event Group

Proration Event Group

Retroactive Event Group

Element

Is this element subject to proration? - Yes

Is this element subject to retroactive changes? - Yes

Retro Group - Entry Changes for Retro

Retroactive Processing

Retroactive Event Group

Proration

Proration GroupProration Formula

How Retroactive Pay Is CalculatedTo process retroactive pay:

1. In the Payroll Calculation work area, review or create retroactive events on the Manage Event Notifications page. Youcan download results to Excel to view retroactive events in a report format.

2. Submit the Recalculate Payroll for Retroactive Changes process. You can use the Submit a Process or Report task,or the process may run automatically as part of your payroll flow. This process never overwrites historical payrolldata. Instead, it creates one or more retroactive entries to receive the process results.

3. Run the Calculate Payroll process.

Note: Always run the Recalculate Payroll for Retroactive Changes process immediately before you run a payroll.If you run it after the Calculate Payroll process, retroactive adjustments are held over until the next payroll period.

If you do not get a retroactive notification that you expect to get, review:

• The originating transaction causing the event

• Element setup



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• Element eligibility for the person

• The retroactive event group entities and attributes that are set up to trigger retroactive events

• The proration event group entities and attributes setup that triggers proration

This figure illustrates retroactive processing for a person getting a pay increase retroactively.

Retroactive ProcessingCurrent Period

1 May, 2011 - 31 May, 2011Monthly Payroll

John Smith4% pay increase

Effective: 13 March, 2011

Review events on Manage Event Notifications

John Smith

Backdated change generates a retroactive

event

Are the results as expected?

No

Yes


Recalculate Payroll for Retroactive Changes

Excel Download of Retroactive Events

John Smith

View events in a spreadsheet?

Yes No

Adding a Retroactive Event ManuallyNormally you create retroactive adjustments, such as backdated salary changes, which automatically create retroactiveevents. This example shows how to create a retroactive event manually. In this example an employee, whose pay ratewas supposed to change last pay period, is being terminated. Payroll hasn't made the change yet, so we need to add theretroactive event manually to generate the correct payslip



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Creating a Payroll Relationship Event1. Select the Manage Event Notifications task in the Payroll Calculation work area. On the Manage Event Notifications

page.2. Click Create.3. In the Create Payroll Relationship Event window, complete these fields.

Field Value

Approval Status

Awaiting Processing

Payroll Relationship

The person to process

Process Date

Date when the retroactive change process is run.

Note: This date indicates when the element change was triggered.

4. Click Save and Close.

Creating a Retroactive Event1. On the Manage Event Notifications page, click the name of the person associated with the event you created.2. On the Manage Retroactive Events page, click Create in the Entry Details section.3. Select the element you want to reprocess, the date from which to recalculate payroll runs, and a retroactive

component.The retroactive component is the element from which the change in pay will be paid to the person.

4. Repeat the previous step if you want to recalculate multiple elements for this payroll relationship.5. Click Submit.

Retroactive Notification ReportRetroactive pay is the recalculation of prior payroll results due to changes that occur after the original payroll calculation is run.

Here are some examples of prior period adjustments:

• An employee receives a pay award that is backdated to a previous pay period.

• The payroll department makes a backdated correction for an error that occurred in a previous pay period.

For example, after evaluating employee performances for the previous calendar year through a three-month review cycle, anemployer may backdate the pay awards to 01, January. When such entries are made in April, it triggers retroactive events foremployees receiving such pay awards. These employees have already been processed by payroll for the last three months.

A retroactive notification is generated when a retroactive payroll event is generated.

Run the Retroactive Notification Report to view retroactive notifications for events that are awaiting processing, deferred, orboth. Run this report before you submit the Recalculate Payroll for Retroactive Changes process.

You can use the report to view the following:

• Unprocessed retroactive events for each employee, enabling you to identify who are included in Recalculate Payrollfor Retroactive Changes process.



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• Event dates that can be used to identify which payroll periods are recalculated by the retroactive process for eachemployee.

• Payroll relationships that are previously deferred so that you can make some or all of them available for the nextretroactive payroll process.

The earliest date across all notifications for a payroll relationship determines the reprocess date. Reprocessing is done acrossall runs starting from the reprocess date, as payroll calculations are cumulative.

For example, suppose a monthly paid employee has unprocessed retroactive events for 15, June and 20, August. Theretroactive process recalculates payroll results for the June, July and August payroll periods. You can use the report to detectpayroll relationships that are previously deferred.

Submit the Run Retroactive Notification Report from the Payroll Checklist work area.

ParametersThe parameter values determine which records to include in the report. Many parameters are self-explanatory. Submit thesame values as you would provide for the retroactive pay processing.

Here’s the list of parameters that have special meaning in the context of this report.

Process Date

The process date determines which records to process and is the same date as when the retroactive change process is run.

Payroll

Enter the same payroll flow name as the flow you use to run the retroactive process.

Retroactive Notification Status

Select a value to determine the type of events to include in the report. The table below lists the values you can select.

Status Description

Deferred

Includes events for payroll relationships whose retroactive pay processing is deferred.

Unprocessed

Includes events that are either awaiting processing or processing.

Both Deferred and Unprocessed

Includes events that are either awaiting processing or processing, or deferred. This is the defaultvalue and is a combination of the other two options.

Person

Enter a value to limit your report to a specific employee.


Select the process configuration group, if you have defined one. Use a process configuration group to provide sets ofprocessing parameters, primarily related to logging and performance. If you don't select a process configuration group; theparameters in the default group for the selected payroll is used.



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Select the payroll relationship group name, if you have defined one. Use a payroll relationship groups to limit the personsprocessed for payroll, data entry, and reporting.

Note: Use the Manage Object Groups task to define any of the groups mentioned above before you can selectit here.

Report ResultsThe PDF output of the report has the following sections.

Parameters Section

The parameters section is at the beginning of the report and displays the report parameters and the sort criteria. The sortcriteria is: Notification Status, Retroactive Process Date, Person Name, Payroll Relationship Number, Entity, Batch Name,Attribute, Update Type, Assignment Number, Element Name, Change Effective Date, Actual Change Date and Changed By.

Notification Status Summary

This section shows the total payroll relationships and total events by each type of retroactive notification status. Each payrollrelationship may have multiple payroll retroactive events such as assignment updates, element entry updates, and so on. Thecounts reflect the number of such events that require payroll to be recalculated from a different process date.

Retroactive Process Date Summary

This section shows the different reprocessing dates for the employees and payroll relationships, and the total count ofworkers and events for each reprocess date. This section gives a quick snapshot of how far back the retroactive reprocessingbegins and for how many workers. These totals are also broken down for each retroactive notification status.

Event Type Summary

This section shows the details of the type and number of events that cause recalculation of payroll for a particular reprocessdate. You can view the number of payroll relationships and employees, and events by entity and attribute for a particularreprocess date.

Event Details by Retroactive Process Date

The detail section shows the different workers and their event details for the same type of event, reprocess date andnotification status, as given below:

• If the entity is related to elements, the element name is shown as part of the event details. The batch used to makethe change, if any, is displayed in the header.

• If the event is related to assignment, the assignment number is shown.

• The old value is shown for Update, Delete and Correction events while the new value is shown for Update, Insert andCorrection events.

Event Details for a Person

This section sorts by each process date and worker. Each payroll relationship has one reprocess date based on the earliestevent. This section lists all the events under each worker and its process date.

• The assignment number is shown only for those events that are specific to an assignment.

• The person number and payroll relationship number are shown along with the person name, in the header.



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• Batch name, if available, and the element name is shown only when the event is related to an element. For all eventsbased on attribute, both the old and new values are shown.

FAQs for Pay Calculation Components

Why can't I edit the secondary classifications for a wage basis rule?You probably defined the rule for the primary classification to include all secondary classifications in the wage basis. Editthe primary classification row and deselect the Select all secondary classifications option. You can then edit individualsecondary classification rows, and select the Use in wage basis option only for those classifications to be considered in thewage basis.

Why can't I create payroll components on the Manage CalculationInformation page?You can view existing components on this page, but you can't create new components. Use the Manage Elements task tocreate new elements. Creating some elements also creates associated calculation components. These elements can includeinvoluntary deductions, pensions, and absence payment elements.

Can I delete or edit a cost component group mapping?Yes. You can delete or edit a cost component group mapping only if it is not referenced in a cost profile.

Can I delete or edit the mapping of a cost component to an analysisgroup?Yes. You can delete or edit the mapping of a cost component to an analysis group, even if the cost component or the costcomponent group is referenced in a cost profile.


Chapter 10Setting Up Elements

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10 Setting Up Elements

Payroll Elements

ElementsSome elements are predefined. You can also create other elements to match your requirements. Each element belongs to aprimary classification, according to its purpose, which determines the template you use to create it. The template creates theelements and, depending on your country extension, associated items required for payroll processing.

Note: You can enter up to 50 characters for the element name. If you enter more than 50 characters, theapplication will automatically shorten the name.

Elements can represent:

• Earnings, such as salary, wages, and bonuses

• Compensation, such as employee stock purchase and insurance plans

• Absences from work

• Tangible items distributed to persons, such as tools, uniforms, mobile phones, or computers

• Statutory deductions, such as taxes, voluntary deductions, contributions to charities or savings plans, andinvoluntary deductions, such as court orders and pretax deductions

• Employer taxes and other employer liabilities

Predefined ElementsThe predefined elements are specific to your country or territory. They typically include deductions for tax and wageattachments. You can't make any changes to these predefined elements. However, you must create eligibility records forthem.

Element CreationYou can create as many earnings and deductions as you require using the Manage Elements task.

You select the element classification and category which determine:

• The template of questions you answer to specify the details of the element you want to create.

• The items that the template generates, which can include multiple elements, input values, formulas, balances, andother items as set out in the table below.

Note: The template you use to create elements also depends on the configuration selected for your countryor territory on the Manage Features by Country or Territory page. For example, if the country extension is set toPayroll, you use a template that generates all the items required for payroll processing. If the country extensionis set to Human Resources or None, you use a basic template that generates the elements only. However, ifyou select an element classification, such as Standard Earnings, Supplemental Earnings, Direct Payments andTaxable Benefits, the basis template creates input values for Amount, Periodicity, and Full-Time Equivalent.



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You can configure any of the generated items to match your specific business requirements. For example, you can add inputvalues, edit the formulas, or add a status processing rule to use a different formula for certain assignment statuses. You mustalso create element eligibility records for the elements.

The following table explains the purpose of the items used in element creation.

Items Used Purpose

Input Values

Define the entry values available on each entry of this element, such as hours worked or amount.

Element Eligibility Records

Define the eligibility criteria a worker's employment record must meet to be eligible for the element.For example you can use grade, payroll, salary basis, or organization as eligibility criteria.

Status Processing Rules

Identify the formula the payroll run uses to process the element, and how to handle the formularesults.

Related Formulas and Related Elements

Identify additional elements and formulas created by the template for payroll processing.

Related Balances

Identify the balances created by the element template for this element.

Maintain ElementsAfter you create and use an element, you are limited on updates you can make to it. This ensures the integrity of the elementfor retroactive processing and the balances of the input values. You can't remove existing input values or add new ones ifyou have created entries for the element. To add an input value to an element before you create any element entries, set youreffective date to the element's start date.

You can make the following changes to an element that has been previously processed:

• Change a required input value to be optional.

• Alter the sequence in which input values appear in the Element Entries page.

• Change the input value validation rules for minimum, maximum, lookup, or formula.

• Change your specification of which input values create database items.

• Change the reporting name. However, the database items created for the element will continue to use the originalname.

Element Classifications

Primary Element ClassificationsPrimary element classifications are defined by Oracle Fusion to meet legislative requirements, and are supplied to users withthe product.



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Primary ClassificationsElements are grouped into primary classifications, such as Earnings and Voluntary Deductions. In a human resourcesdepartment, you can use the primary classifications to identify groups of elements for information and analysis purposes. Ina payroll department, the classifications control processing, including the sequence in which elements are processed andthe balances they feed. Oracle Fusion provides primary classifications and some balances, mainly to reflect tax legislation.They are designed to meet the legislative requirements of your country, so you cannot change or delete them. You can createadditional balances to be fed by any of the primary classifications.

Secondary Element ClassificationsYou can define secondary classifications to feed your own user defined balances.

Secondary ClassificationsSecondary classifications are subsets of the primary classifications. In some legislations, secondary classifications have beenpredefined. As with primary classifications, you cannot remove or change any predefined secondary classifications, and youcannot disable any of the predefined balance feeds created for them.

How Element Classification Components Work TogetherWhen you create an element, you select a primary classification, such as Involuntary Deductions, and optionally a secondaryclassification, such as Child Support. The classifications, which vary by country or territory, control the element templatequestions you answer to define the element. An element may automatically inherit subclassifications from its primaryclassification. You can optionally select additional subclassifications for an element to control the balances it feeds.

Primary ClassificationsPrimary classifications meet the legislative requirements of your country or territory, so you can't change them.

In a human resources department, you can use the primary classifications to identify groups of elements for information andanalysis purposes. In a payroll department, the classifications control processing, including the sequence in which elementsare processed and the balances they feed.

Secondary ClassificationsSecondary classifications are subsets of the primary classifications. Use them to manage wage basis rules for deductions andtaxes. You can't remove or change any predefined secondary classifications. In some countries or territories, you can createyour own secondary classifications.

SubclassificationsSubclassifications provide a way to feed balances. Elements can have only one primary and secondary classification, butmultiple subclassifications. You can create subclassifications or use predefined ones. You can specify that a subclassificationautomatically applies to every element in the primary classification.

Tip: Each subclassification belongs to one primary classification only. If you reuse a subclassification nameunder different primary classifications, it's treated as a separate subclassification and you must create separatebalance feeds for each subclassification.



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CostingEach primary classification includes the following costing rules:

• Allow Costing: If this rule is set to Yes, you can select any costing option for element eligibility records.

• Allow Distribution: If this rule is set to Yes, you can create distribution groups with elements in this classification.For example, you can create a distribution group with all of the earnings elements and prorate tax expensesproportionately over the cost centers in which the wages were earned.

• Debit or Credit: This rule determines whether a positive amount is costed as a debit or a credit.

Frequency RulesIf frequency rules are enabled for a primary classification, you can use them on an element if you don't want to process iteach period. For example, you can set frequency rules to process element entries on the first and third weekly payroll periodsof each month. The default frequency rule is to process each period.

Related Topics• Payroll Balance Definitions

How Element Processing Sequence is DeterminedYou can set a predefined sequence in which a payroll run processes elements. An element's primary classification defines adefault processing priority for the element in payroll runs. Lower priority numbers process first.

Override Default Processing PriorityMost classifications also have a priority range. To set the priority, edit the element on the Element Summary page. Setting aspecific priority establishes the order in which the element processes with respect to other elements in the classification.

Sometimes you must prioritize the processing of certain element entries for an individual person. For example, you may needto determine the precise order in which deductions taken for wage attachments process for a person. In this case, enter asub priority number for element entries.

Element Employment Level

Employment Level Options for ElementsYour enterprise uses an employment model. When you create elements, you select the employment level at which to attachthe element. If you select a level below payroll relationship, each assignment record can have separate element entries.

Payroll Relationship LevelThis level is the highest level for accumulating balances. Every payroll run processes payroll relationship elements.

Typical elements to define at payroll relationship level are:

• Tax deductions

• Pension



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• Child support

• Medical care

• Union dues

• Benefits activity rate calculations, such as employee contributions and flex credits

Assignment LevelUse this lowest level for elements that require different entries for different assignments, or when the element applies only tospecific assignments.

Typical elements to define at assignment level are:

• Assignment salary

• Regular hours

• Overtime

• Sales bonus

• Profit-sharing bonus

Element Types

Create Earnings Elements for PayrollThis example shows how to use the element template to create a regular earnings element, such as salary. After you createthe earnings element, you must create at least one eligibility record for it.

Creating an Earnings Element1. In the Payroll Calculation work area, click Manage Elements.2. Click Create.3. Complete the fields, as shown in this table.

Field Value


Your legislative data group


Standard Earnings

Secondary Classification

Regular

4. Click Continue.5. Enter a name and other basic details, then respond to the questions as shown in this table.

You can enter up to 50 characters for the element name. If you enter more than 50 characters, the taskautomatically shortens the name.



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Question Answer

Should every person eligible for theelement automatically receive it?

No.

What is the earliest entry date for thiselement?

First Standard Earnings Date

What is the latest entry date for thiselement?

Last Standard Earning Date

Note: If you select this date, you must enable proration so the calculation is correct if aperson leaves prior to a pay period end date.

At which employment level should thiselement be attached?

Assignment Level

Does the element recur each payrollperiod, or does it require explicit entry?

Recurring

Process the element only once in eachpayroll period?

Yes

Can a person have more than oneentry of the element in a payroll period?

No

Process and pay element separately orwith other earnings elements?

Process and pay with other earnings

6. Click Next.7. On the Additional Details page, complete the fields, as shown in this table.

Question Answer

What is the calculation rule?

Flat Amount

Is this element subject to proration?

Yes

Proration Group

Entry Changes for Proration

Is this element subject to retroactivechanges?

Yes

Retro Group

Entry Change for Retro

Should this element be included inthe earnings calculation of the FLSAovertime base rate? (USA only)

Yes



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Question Answer

Should this element be included in thehours calculation of the FLSA overtimebase rate? (USA only)

Yes

8. Click Next.9. Verify that the information is correct.

10. Click Submit.

Creating an Eligibility RecordOn the Element Summary page, update the newly created element details.

1. In the Element Overview section, select Actions, Create Element Eligibility.2. On the Element Eligibility name field, enter REGULAR SALARY ELIG.3. In the Eligibility Criteria section, select All payrolls eligible.4. Click Submit.

Related Topics


Overview of Absence Elements for Compensatory and LeaveDonation PlansYou can make absence payments for compensatory absence plans based on the date that the compensatory time wasaccrued. The Absence application passes the accrued date to the Global Payroll application so that it uses the correct rate ofpay for absence.

For example, an employee is hired on 1/1/17 and is paid at a rate of 10 per hour. On 8/1/17, the employee receives a payrise and is now paid at a rate of 12 per hour. The employee takes 3 days of leave from 10/5/17 to 10/7/17.

The employee accrued this leave as time off in lieu (TOIL) in July 2017 when they were earning 10 per hour. The applicationpays the employee for the 3 days leave at a rate of 10 per hour.

Compensatory PlansWhen creating a rate definition to use for compensatory absence plans, in the Reference Date field, select the AbsenceAccrued Date value. The rate calculator calculates the rate as of the absence accrued date that is passed from the Absenceapplication.

In the Setup and Maintenance work area, use the following to create absence elements for compensatory absence plans:

• Offering: Workforce Deployment

• Functional Area: Payroll

• Task: Manage Elements

When creating such plans, in the type of absence information to transfer to payroll option, select Accrual Balances andAbsences.




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Leave Donation PlansWorkers can initiate requests to donate some or all of their accrual plan balances to coworkers who need additional time off.Administrators and managers can initiate this donation request on behalf of the worker. You can donate vacation only fromAccrual and Compensatory plan types. Also, you can only donate in day or hours.

For example, Employee A is diagnosed with a long term illness and will be absent from work for a long time. You can enrollthe employee into a leave donation plan. Employee B has a vacation accrual balance of 100 hours and wants to donate 10hours to Employee A.

For example, Employee A is diagnosed with a long term illness and will be absent from work for a long time. You can enrollthe employee into a leave donation plan. Employee B has a vacation accrual balance of 100 hours and wants to donate 10hours to Employee A.

Now, instead of the stipulated 100 hours, Employee B will have an accrual balance of 90 hours. Employee A will have anaccrual balance of 10 hours against the leave donation plan.

To use this balance, Employee A can do one of the following:

• Enter a leave in the Absence application. The Global Payroll application receives an entitlement record for thenumber of hours or days that they requested.

• Take the balance as a Cash out or Payout.

Note: If Employee B earns 20 per hour and Employee A earns 10 per hour, then the application pays Employee B at 10 perhour.

When creating absence elements for leave donation plans, in the type of absence information to transfer to payroll option,select Accrual Balances and Absences.

Absence Elements for Payments after TerminationFor absence plans that support payments after termination, set the entitlement element to Final Close. When creatingabsence element template, select Yes in the enable entitlement payments after termination option. Then, set each of theentitlement elements to the Final Close value.

On the Manage Payroll Process Configuration page, set the Absence and Time Calculation Entries During Payrollparameter to one of the following values:

Value Description

Yes The application includes the absence and time calculation entries in the payroll run for those activeemployees that have the following assignment statuses:

• Process When Earning• Process When One Time Entry

Further, the application includes the terminated employees in the payroll run only if they have anearning or an assignment level non-recurring element entry.

No The application does not include the absence and time calculation entries in the payroll run for those

employees that have the following assignment statuses:

• Process When Earning• Process When One Time Entry



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Value Description

And the application includes the terminated workers in the payroll run only if they have anassignment level non-recurring element entry.

Related Topics• How You Configure Compensatory Time

• Options to Define Compensatory Plans

• Options to Define Donation Plans

Define Payroll Elements to Process AbsencesYou define elements to calculate and process absence payments in Oracle. When you define an absence element, yourresponses to the element template questions determine which elements, balances, formulas, and calculation components thetemplate generates.

Defining an absence element involves the following steps:

• Defining an absence element

• Completing absence detail questions

• Completing accrual liability and balance payment questions

• Completing absence payment questions

• Submitting the element

• Defining element eligibility records and cost distributions

Defining an Absence ElementDefine an absence element, selecting a primary classification of Absence, and a secondary classification. Typically, thepredefined values include vacation, maternity, sickness, and other. Use the Manage Elements task in the Payroll Calculationwork area.

Completing Absence Detail QuestionsThe questions you complete in the Absence Details section determine which subsequent questions the template displays.You enter the following information in the Absence Details section:

1. Specify the calculation units to use when reporting the absence, for example that is shown on the payslip, andstatement of earnings. Typically, you select Days or Hours for your reports that correspond to the units for yourabsence plan. When creating an absence element, select the work calculation rule to calculate the absence rate.

2. Select the absence information to transfer to payroll based on the type of absence management plan.

Absence Management Plan Type Absence Information to Transfer

Accrual

Accrual Balances

Accrual, Leave Donation,Compensatory

Accrual Balances and Absences

Qualification Qualification Absences

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Absence Management Plan Type Absence Information to Transfer

No Entitlement

No Entitlement Absences

Completing Accrual Liability and Balance Payment QuestionsIf you transfer accrual balances, complete the questions shown in the following table.

Question Steps

Calculate absence liability?

1. Select Yes, if you calculate liability.2. Select a liability rate.

Usually the rate is the same as the absence payment rate. You might select a different ratewhen estimating liability for billing purposes.

Does this plan enable balance paymentswhen enrollment ends?

1. Select Yes to configure a final disbursement element and to maintain balances for thedisbursement hours and payments.

2. Optionally, select a rate to use for the calculation.

Does this plan enable partial payment ofbalance?

1. Select Yes to configure a discretionary disbursement element and to maintain balances fordisbursement hours and payments.

2. Optionally, select a rate to use for the calculation.

Completing Absence Payment QuestionsComplete the following questions:

1. Select a method to reduce regular earnings if employees don't complete a time card, or the time card entries aren'tused as a basis for calculating pay:

◦ Reduce regular earnings by absence payment (entitlement payment balance)

◦ Select rate to determine absence deduction amount (entitlement deduction balance)

You might select one of the following:

• The Reduce regular earnings option to reduce regular earnings by the absence payment. This meansthat the employee is paid the same net amount as if they weren't absent.

• The Select rate to determine deduction amount option when the employee is not due to be paidfor the absence at the same rate as their regular earnings. In this case, the absence deduction rate thatyou select will be a rate that deducts 100% of the regular earnings. However, the absence paymentrate would be a different rate, for example 50%.

2. Optionally, select a rate to calculate the absence payment.

If you have standard earnings and absence elements in the same payroll run that reduce regular earnings, the payrollcalculation reduces earnings in this sequence:

a. Using absence element entriesb. Using any standard earnings elements that reduce regular earnings

The salary balance isn't reduced beyond zero.



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3. You can now ensure that absence entitlement payments are made to employees after terminations. Use the Doesthis plan enable entitlement payments after termination? question on the absence element template to set theentitlement element to Final Close.Example: Amelia is due to be paid maternity payments after her termination. Select Yes in this newly-added questionto set the latest entry date of the entitlement elements to final close. With this, the absence entitlement payments aremade to Amelia after her termination.

In addition to this, you will need to do the following:

• When Amelia is terminated, change her employment assignment status to Process When Earning.

• Set the TERM_INCLUDE_PR_LEVEL action parameter to Y, so that payroll relationship level entries are consideredfor processing.

Submitting the ElementWhen you submit the element, the template automatically configures a base pay element, balances, formulas, and calculationcomponents.

The template also configures additional elements, depending on the options selected in the template to transfer absenceinformation, as shown in the following table.

Type of Absence Information to Transfer Optional Balance Payments Selected Additional Elements Configured

Accrual Balances

• Discretionary Disbursements• Final Disbursements

• Accrual• Discretionary Disbursement• Final Disbursement


• Discretionary Disbursements• Final Disbursements

• Accrual• Entitlement• Discretionary Disbursement• Final Disbursement

Qualification Absences

none

Entitlement

No Entitlement Absences

none

Entitlement

Defining Element Eligibility Records and Cost DistributionsDefine element eligibility records for all the elements generated by the template, for example for your accrual, entitlement,discretionary and final disbursement elements.

If your enterprise calculates cost distributions, specify costing for all the element eligibility records. For example, for an accrualelement, you do the following steps

1. Define element eligibility records for the accrual, accrual results, accrual retroactive, and accrual retroactive resultselements.

2. Specify costing for the accrual results and retroactive results elements.

The costing process would cost the change in the liability balance since the last payroll period, debit the expense accountand credit the liability account.

Related Topics• Costing of Elements Options

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• Importing Absence Entries to Payroll: Procedure

• Rates Used to Calculate Absences in Payroll

Define Payroll Elements for an Absence Accrual PlanThis example shows how to define an absence element for a vacation accrual absence plan. Based on your setup decisions,this procedure configures the following additional elements:

• Accrual element to process absence liability amounts

• Entitlement element to process payments for absence during vacation

• Discretionary Disbursement element to process disbursement of partial time accruals

• Final Disbursement element to process accrual disbursement when the absence plan enrollment ends

The name of the element is prefixed to each additional element.

The following table summarizes key decisions for this scenario.


What type of an absence are you transferring to payroll?

Accrual balances

Who is eligible to receive this element?

All workers

What units do you want to use for reporting calculations?

Days

Do you want the element to calculate absence liability?

Yes

Which rate should the calculate absence liability use?

Liability Rate

Does your absence plan enable balance payments when enrollmentends?

Yes

Which rate should the final disbursement payment use?

Final Disbursement Rate

Does your absence plan enable payment of partial accrual balances?

Yes

Which rate should the partial disbursement payment use?

Partial Disbursement Rate

How do you want to calculate deductions for paid absences foremployees not requiring a time card?

• Reduce regular earnings by the amount of the absencepayment so that the worker does not get paid twice?

• Select a rate to determine the absence deduction amount?

Reduce regular earnings by absence payment

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PrerequisitesEnsure that you configured a rate definition to determine the monetary value of a unit of absence, and depending on yourenterprise separate rates to calculate liability, discretionary disbursement, and final disbursement payments. You configure arate definition using the Manage Rate Definitions task in the Setup and Maintenance or Payroll Calculation work area.

Defining an Absence Element1. In the Setup and Maintenance work area or the Payroll Calculation work area, use the Manage Elements task.2. Click Create.3. In the Create Element window, complete the fields as shown in this table.

Field Value

Legislative Data GroupSelect your legislative data group.

Primary ClassificationAbsences

Secondary ClassificationSelect an appropriate value for your legislation, such as Vacation.

CategoryAbsence

4. Click Continue.5. On the Create Element: Basic Information page, complete the fields as shown in this table. Use default values for

fields unless the steps specify other values.

You can enter up to 50 characters for the element name. If you enter more than 50 characters, the application willautomatically shorten the name.

6. In the Currency Details section, Input Currency defaults from Legislative Data Group currency.7. In the Absence Plan Details section, complete the fields as shown in this table. Use default values for fields unless

the steps specify other values.

Field Value

What calculation units are used forreporting?

Days

Work Units Conversion Rule

Standard Rate Daily

What type of absence information doyou want transferred to payroll?


8. Click Next.9. On the Create Elements: Additional Details page, in the Accrual Liability and Balance Payments section, complete

the fields as shown in this table. Use default values for fields unless the steps specify other values.

Field Value

Calculate absence liability?Yes.



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Field Value

Which rate should the liabilitybalance calculation use?

Liability rate.

Does this plan enable balancepayments when enrollment ends?

Yes

Which rate should the final balancepayment calculation use?

Final disbursement rate.

How do you want Payout Amountto be taxed?

Supplemental

Does this plan enable partialpayments of absences?

Yes

Which rate should the discretionarydisbursement use?

Discretionary disbursement rate.

10. On the Create Elements: Additional Details page, in the Absence Payments section, complete the fields as shownin this table. Use default values for fields unless the steps specify other values. For the purposes of this workedexample, all fields are being entered, however, only required fields must be entered and others may be blank.

Field Value

How do you want to reduceearnings for employees notrequiring a time card?

Reduce regular earnings by absence payment.

Which rate should the absencepayment calculation use?

Absence payment.

11. Click Next.12. On the Create Element: Review page, review the information that you entered so far.13. Click Submit to open the Element Summary page.

The template generates all the related elements, balances, and formulas.

Defining Element Eligibility1. In the Element Overview section of the Element Summary page, click the Element Eligibility node.2. Click Create Element Eligibility from the Actions menu.3. In the Element Eligibility section, enter Vacation Payment Open in the Element Eligibility Name text box. Leave the

rest of the fields on the page blank.4. Click Submit.5. Click Done.6. In the Manage Elements page, search for the other elements prefixed with your absence element name.7. Select each element in turn and repeat the steps on the Element Summary page to define eligibility for each element.



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Create Elements for Time Card EntriesYou create nonrecurring elements to process pay based on time card entries, such as elements for regular, overtime, double-time, and shift pay. Creating a time card element generates all the related elements, balances, formulas, and calculationcomponents. You then transfer the elements to your time provider.

This topic covers the following procedures:

• Creating earnings elements

• Creating calculation components for standard-category elements

• Converting elements for use in time cards

• Setting up area overrides

• Setting up costing overrides

Creating Earnings ElementsThe steps for creating a time card element depend on whether the time card template is available for your country. If thetemplate is available, follow the steps in this section. Otherwise, create an earnings element using the Standard category, andspecify an hours multiplied by rate calculation rule.

Complete these steps to create an element using the time card template:

1. Create an earnings element on the Manage Elements page of the Payroll Calculation work area.2. Select a primary classification of standard or supplemental earnings.3. For Global Payroll, select the Time Card category.4. Complete the information on the Basic Details page.5. On the Additional Details page:

a. Select the calculation units to use in reports.

Typically, you select time units that match the time units entered on time cards for that element. If you selectdifferent units, the application uses 8 hours to convert days to hours.

b. Optionally, select a default rate to calculate time.

When calculating the run result for the element entry, the formula uses the default rate unless a rate is enteredon the person's time card.

6. Complete the element eligibility information for the new time element, and its associated retroactive and relatedelements, such as the result and calculation elements.

Note: If the straight time portion of overtime is reported separately from regular time, create two elements,such as overtime and overtime premium elements. If the regular and straight time portions of overtime arereported together, you might use straight time instead of regular time, and create a separate element for theovertime premium.

Creating Calculation Components for Standard-Category ElementsYou can create calculation components for elements created with the Standard category rather than the Time Card category.Complete the following steps for each existing element:

1. Submit the Create Time Card Calculation Components process from the Payroll Checklist or Payroll Administrationwork area.



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These elements must have a calculation rule of hours multiplied by rate.2. Complete the element eligibility information for the element and its associated retroactive and its related elements,

including the result element, and the element with a suffix of CIR.3. After you run the process to convert your elements, submit the Compile Formula process in the Manage Payroll

Calculations work area. Perform a bulk compile by entering wild cards in the Formula and Formula Type parameters.

Generate Time Card Fields for Your ElementsAfter creating elements, generate time card fields for them. Complete the processes in this table using the Time and Laborfunctional area in the Setup and Maintenance work area, Workforce Deployment offering:

Process Description

Generate Data Dictionary TimeAttributes

Creates dependent payroll attributes for all element input values, such as hours and rate. You must run the Generate Data Dictionary Time Attributes process after making any changes totime elements. Such changes include adding or deleting elements, editing input values, or editingelement eligibility records.

Caution: Failure to run the process might negatively impact the setup of time card fields, thevalidation of payroll time types, or the transfer of time to payroll.

Generate Time Card Fields

Creates time card fields using the data dictionary time attributions for the specified legislative datagroup. You can use the Manage Time Card Fields task to create time card fields for single and multipleattributes.

If you are using a third-party time provider, create an HCM extract for the time card elements. The extract includes theelement's mapping ID that you specify in the XML file when you transfer the time entries to payroll.

Setting Up Area OverridesSome countries or territories create time card elements with area input values for use as overrides. The overrides enableemployers to tax employees based on where they work. For example, employees would specify the area information wherethey worked on temporary assignment while away from their normal work location. These area entries are then included in thetime card records transferred to payroll by the Load Time Card Batches process.

Setting Up Costing OverridesYou can specify additional attributes in Time and Labor to enter costing segment values on time cards. The segments mustmatch the segments that you can enter on element entries. Use the Manage Element Entries task in the Payroll Calculationand search for a person's record. View the available segments on the Costing tab of the Manage Person Details page.Costing is defined on the element eligibility record of the results element. When you transfer time entries, the transfer processdisplays the costing on the calculation element.

As an example, the structure of your cost allocation key flexfield might specify that the department segment is entered atthe element entry level. You could specify this additional attribute on the time card. Your employees could then specify thedepartment to charge for overtime hours worked while on loan to a different department. After you transfer the time entries,the payroll calculation uses the department specified for the overtime hours to derive the costing results.



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To view the results of the costing overrides transferred to payroll, do the following:

1. On the Accounting Distribution work area, select Search Person.2. On the Search Person page, search for a person.3. Click the Actions down arrow and select View Person Process Results in the Process Results option.4. Go into a person's statement of earnings.5. Select Costing Results.

Related Topics• Processing Time Entries in Payroll

• Time Card Required Option

Element Input Values

Element Input ValuesAn element's input values define the entry values available on each entry of this element. Each input value has a unit ofmeasure, such as money or date. Input values can include validations and conditions to control the data entry of the elemententry assigned to a person. For example, an earnings element may have an input value for hours worked, which is requiredand has a unit of measure of number.

When you create an element, some input values are created automatically depending on your country extension and theelement classification. You can create additional input values for any element, as needed.

Input Value OptionsFor each input value created, you can modify these attributes:

Field Value Purpose

Display Sequence

Enter a number to control the display order of the entry value on element entries.

Special Purpose

Select how the input value is to be used. For example, you can indicate that it holds a percentagevalue, a rate, or third-party payee details. This value assists with processing the input value basedon what type of information it holds.

Unit of Measure

Select the value that describes the type of value the entry value can hold, such as number orcharacter.

Displayed

Select to display the input value on the element entry.

Allow User Entry

Select to enter values on element entries.

Required Select to make the input value a required entry value on the element entry. If you select Required,

you must also select Displayed and Allow User Entry.


Select if you want to make the values available for formulas or HCM extract.

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Field Value Purpose

Rate Formula Select a rate calculation formula, for example to return a value from a user-defined table. This option

only applies to the Primary input value for elements associated with rate definitions that have theElement method and a contributor type of Amount. If you select a formula, you must not selectAllow User Entry.

Default

Enter a value that appears as the default value for this entry value in element entries, if needed.

Apply default at runtime

Select to apply the default value when you run the payroll process, rather than when you create theelement entry. This selection ensures you use the latest value on the date of the payroll run. You canmanually override the default value on the element entry.

Minimum

Enter a minimum value, if needed.

Maximum

Enter a maximum value, if needed.

Validation Formula

Enter a formula that validates the entry value entered on element entries, if needed.

Validation Source

Use with the other input value options to select the valid validation method, such as lookups orformulas.

Lookup Type

Specify a lookup type to provide a list of values for an entry value. This option is available for inputvalues of type Character only.

Warning or Error

Use when you are validating the input value or entering a minimum or maximum value. It specifieswhether a warning or an error displays if the entry fails the validation condition or doesn't meet theminimum or maximum value indicated.

Reference Use to associate a balance context with the run result.

For example, you can associate a context, such as jurisdiction, with an element. Create an inputvalue for jurisdiction and select the jurisdiction context in the Reference field. Then the run resultvalue of the input value works as a context value when updating the balance.

If you select a reference, then the lookup type and validation source values should be automaticallyset to the reference context. You must provide the Reference field first for the validation sourcevalue to be automatically populated.

Value Set

Specify a value set to provide a dynamic list of values for an entry value. This option is available forinput values of type Character only.

Caution: Once an element is processed, you can't update certain input value attributes, such as unit ofmeasure. This restriction ensures that you can't change attributes that would invalidate prior results.

This table provides examples of the allowable formats, depending on the unit of measure (UOM) specified for the entry valueon the Manage Elements - Element Overview, Input Values page.

Unit of Measure Sample Entry Value Display in Application

Character C Complete



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Unit of Measure Sample Entry Value Display in Application

Integer

12345

12,345

Number

12345.6789 0.123456789

12,345.6789 0.123456789

Day

123 0.123

123 0.123

Money

12345 -12345.67

12345.00 <12345.67>

Hours in decimal format, 1 place

12345

12345.0

Hours in decimal format, 2 places

12345

12345.00

Hours in decimal format, 3 places

12345

12345.000

Hours expressed as a numeric value

12345

12345

Hours and minutes expressed as numericvalues

12345

12345:00

Hours, minutes, and seconds expressed asnumeric values

12345

12345:00:00

Date

2016-06-21

21-Jun-2016

Time

13:05

1:05 PM

Note: Display values can be derived from the meaning attribute of the view object. For example if you enter Cas a value for the Character UOM it could display as Complete. Conversion to display formats is based on theprofile option value and locale.

Related Topics

• How Element Setup Affects Entries and Their Entry Values

• Create and Edit Profile Options

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Use a Value Set for an Element Input ValueYou can use value sets to provide a dynamic list of values for an element input value. Use a value set for lists containingvalues that already exist in tables, such as person name or number, legislative data group, or payroll statutory unit. Thebenefit of this approach is that you don't have to create and maintain a lookup type. Using value sets helps maintainconsistency and accuracy in your data.

Note: The only type of value set supported for element input values is the table-based value set. Oracle FusionGlobal Payroll doesn't support other value set types, such as Independent or Format Only.

In the Setup and Maintenance work area go to the following::



Task: Manage Value Sets

Create value sets using the Manage Value Sets task. You select the Table validation type to define a value set that filtersvalues from an existing table using a SQL statement.

The following table provides the required values that you enter when you create a value set for use on the Manage Elementspage.

Field Value

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

Note: To enable the Value Set field on the Manage Elements page you must select Character as the Unit ofMeasure for the input value.

To improve the performance of your value set queries, use these contexts to filter the value set records:

• PayrollRelationshipId

• PersonId

• PayrollTermId

• PayrollAssignmentId

• LegDataGroupId

• LegCode

• SysEffectiveDate

WHERE Clause example: pay_pay_relationships_dn.payroll_relationship_id = :{PARAMETER.PayrollRelationshipId}



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Note: If you use these contexts in your value set SQL, make sure the WHERE clause parameter name matchesthe context name.

In this example, an element contains input values for legislative data group and element name. The list of values for elementname is dependent on the selected legislative data group. As part of setup, you can select a default legislative data group forthe element, or for a specific element eligibility record.

In summary, the steps are:

• Create a value set to return a list of all legislative data groups

• Create a value set that returns all elements in the legislative data group

• Add the value set codes to the Manage Elements page

Creating a Value Set to Return a List of all Legislative Data Groups1. From the Setup and Maintenance work area, search for and select the Manage Value Sets task.

Offering: Workforce DeploymentFunctional Area: PayrollTask: Manage Payroll Value Sets

2. Click Create.3. Complete the fields, as shown in this table.

Field Value

Value Set Code

LDG_VS

Description

Retrieve Legislative Data Groups

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

FROM Clause

PER_ LEGISLATIVE_ DATA_ GROUPS_vl

Value Column Name

NAME

Value Column Type

VARCHAR2

Value Column Length

240

ID Column Name

LEGISLATIVE_ DATA_GROUP_ID

ID Column Type

NUMBER

ID Column Length 18



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Field Value

WHERE Clause

business_ group_id=202

Tip: To avoid failure of the value set, use IDs instead of names in case the display namechanges in the future.

ORDER BY Clause

NAME

4. Click Save.

Creating a Value Set that Returns all Elements in the Legislative Data Group1. On the Manage Value Sets page, click Create.2. Complete the fields, as shown in this table.

Field Value

Value Set Code

ELE_VS

Description

Elements

Module

Global Payroll

Validation Type

Table

Value Data Type

Character

FROM Clause

pay_ element_ types_f

Value Column Name

base_ element_name

Value Column Type

VARCHAR2

Value Column Length

80

ID Column Name

element_ type_id

ID Column Type

NUMBER

ID Column Length

18

WHERE Clause

LEGISLATIVE_ DATA_ GROUP_ id= :{PARAMETER. LDGIP}

Note: LDG_IP is the input value name.



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Field Value

ORDER BY Clause

base_ element_name

3. Click Save.

Adding the Value Set Codes to the Manage Elements Page1. From the Payroll Calculation Work Area, click the Manage Elements task.2. Create a new element to meet your requirements and then click Submit.3. When the Element Summary page displays, click the Input Values folder.4. Click Actions and then select Create Input Values.5. Enter the name LDG_IP and the display sequence for the input value.6. Select Character as the Unit of Measure.7. Enter LDG_VS in the Value Set field.8. Go to the Default field and select a legislative data group.9. Click Save.

10. Click Submit.11. Repeat these steps to create an element input value using the ELE_VS value set.

You can override the default values on the Element Eligibility - Input Values page for a specific eligibility record.

Element Entries

Enable Automatic, Multiple, or Additional Element Entries OptionsYou can select options for an element to define how you can update its element entries. The options include:

• Automatic entry

• Allow multiple entries in same period

• Additional entry

Automatic EntryWhen you create an element, you can select Yes for the question: Should every person eligible for the element automaticallyreceive it? This setting selects the Automatic entry option by default for all eligibility records you create for that element.However, you can override the selection for any specific eligibility record before you save it.

When you select this option, saving the eligibility record initiates a payroll flow to create element entries for all eligible workers.To monitor this flow:

• You can view the progress of the process in the Automatic Entry Status field. If the status shows that an erroroccurred, you can save the eligibility record again to resubmit the flow.

• If you have access to payroll work areas, you can also monitor the progress of the Generate Automatic ElementEntries flow on the Processes and Reports tab. You can navigate to the Processes and Reports tab through thesework areas: Payroll Dashboard, Payroll Checklist or Payroll Calculation.

Any updates to the employment records of eligible workers, including hires and terminations, automatically update, create, orend the element entries, as appropriate.



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Tip: If you select the Automatic entry option, you can't also select Allow multiple entries in same period.

Allow Multiple Entries in Same PeriodThis option enables you to give a person more than one entry of the element in the same pay period. For example, if youenter overtime hours on a weekly basis for a person that is paid monthly, you might need to enter five entries on an overtimeelement in each period.

If you are creating a net-to-gross element, you must select Allow multiple entries in same period.

Note: An element with the Automatic entry option selected cannot allow multiple entries in the same period.

Additional EntryThis option enables you to add an occasional one-time entry for recurring elements. This additional entry can override or addto the normal entry amount.

Related Topics• Element Entry Methods

• Status of Flow Tasks

Options to Determine an Element's Latest Entry DateAn element's latest entry date determines how element entries process after a person is terminated or transferred to anotherpayroll. The options include: final close, last standard earning date, and last standard process date. These are the predefinedoptions. You can create others that fit your business needs.

Final CloseThis option enables the element to stay open for entries beyond a person's last day worked. For example, you may want theelement to stay open to pay a severance package.

Last Standard Earning DateThis option stops all element entries on the date the person leaves. You should use this option for recurring entries such assalary.

Tip: If you select the last standard earning date option, also select proration for the element. This ensures thatthe element is processed up to this date, even if it isn't active at the end of a payroll period.

Last Standard Process DateThe value for last standard process date is automatically set to the last day of the pay period in which the person isterminated. You can, however, set it to a later period when you terminate a person. It stops all element entries on the laststandard process date or on the date the assignment ends, if this is earlier.

Related Topics• How Element Setup Affects Entries and Their Entry Values


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Default Values for Element EntriesSpecify default values for element entries using the Manage Elements task in the Payroll Calculation work area. Your elementsetup controls when the default value affects element entries. You can apply the default value only when an element entry iscreated, or you can apply the latest default value at runtime. Another option is to use a formula to provide default values onone or more entry values.

You can do these actions:

• Set a default value for an input value, or select a defaulting formula for the element.

• Override the default value or formula for a specific group of employees that an element eligibility record identifies.

• Override the default value for specific employees on their element entries.

Define Elements to Provide Default Values at Element Entry CreationWhen you create or edit input values, you can specify a default value. If you don't select the Apply default at runtimeoption, subsequent updates to the default value have no effect on existing element entries. Users can override or change thedefault value at any time.

Define Elements to Provide Default Values at RuntimeTo use this method, enter the default value and select the Apply default at runtime option for the input value. If the elemententry value is left blank, the payroll process uses the current default value from the element or element eligibility record. If youenter a value, the manual entry overrides the default value and updates to the default value don't affect that entry. If you wantto restore the default value, clear the entry.

Use a Formula to Provide Default ValuesYou can create a formula of type element input validation to provide default values for one or more entry values. Select thisformula in the Defaulting Formula field for an element or element eligibility record. Here's the order of precedence:

• A formula at the element eligibility level overrides a formula at the element level.

• If you enter a default value for the input value and select a defaulting formula, the formula overrides the default value.

Related Topics• How Element Setup Affects Entries and Their Entry Values

Element Input Validation Formula TypeYou can use an element input validation formula to validate one or more element entry values. You can also use this formulatype to provide a default value for an element entry value, or to calculate entry values based on the user's entries in otherentry values.

You select the formula on the Element Summary page in the following fields:

Page Section Field Purpose When the Formula Runs

Element Details, or ElementEligibility

Validation Formula

To validate one or more entryvalues for the element based onentries in other entry values.

When you save the elemententry.




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Page Section Field Purpose When the Formula Runs


Calculation Formula

To provide values for one ormore entry values using acalculation that takes input fromthese or other entry values.

When you save the elemententry.


Defaulting Formula

To provide default values for oneor more entry values.

When you create the elemententry.

Input Value

Validation Formula

To validate one entry valueindependently of others.

When you enter the value.

Note: In all cases, a formula at the element eligibility level overrides an equivalent formula at the element level.

ContextsThe following contexts are available to all formulas of this type:

• LEGISLATIVE_DATA_GROUP_ID

• DATE_EARNED

• EFFECTIVE_DATE

The following contexts are available to formulas at element or element eligibility level only, not to validation formulas at theinput value level:

• PERSON_ID

• PAYROLL_RELATIONSHIP_ID

• PAYROLL_TERM_ID

• PAYROLL_ASSIGNMENT_ID

• HR_RELATIONSHIP_ID

• HR_TERM_ID

• HR_ASSIGNMENT_ID

Input VariablesThe following input variables are available to formulas of this type.

Formula Usage Input Variables Comments

Validation formula at input value level

entry_value

Passes the value to be validated. You mustdeclare the input variable as the appropriatetype for the element input value.

Validation formula at element or elementeligibility level

Any element input value name thatcorresponds to an entry value.

Replace spaces in the input value name withunderscores in the input variable name. It doesn't matter whether you use uppercaseor lowercase for the name.

Defaulting formula None Use database items or other logic instead.



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Formula Usage Input Variables Comments

Calculation formula

Any element input value name of an entryvalue.

Replace spaces with underscores. You don't need to provide all of the availableentry values.

Return ValuesThe following return values are available to formulas of this type.

Formula Usage Return Values Comments

Validation formula at any level.

formula_status

Must be either 'S' (success) or 'E' (error).Required.

Validation formula at any level.

formula_ message

Text of message passed to user if thevalidation fails. Optional.

Defaulting formula


A return value overrides any default valueprovided on the input value in the element orelement eligibility record.

Calculation formula


You don't need to return all of the availableentry values. You can return the entry valuesthat were passed in as input variables, orother entry values.

Sample FormulaThis section contains the following sample formulas:

• Validation formula at input value level

• Validation formula at element or element eligibility level

• Calculation formula at element or element eligibility level

• Defaulting formula at element or element eligibility level

Validation formula at input value level:

inputs are entry_value(date)if(entry_value = '01-APR-2008' (date)) then(formula_message = 'Valid date'formula_status = 'S')else(formula_message = 'Invalid date'formula_status = 'E')return formula_message, formula_status

Validation formula at element or element eligibility level:

inputs are hours_worked, rate, earning_date(date), comment(text)if(hours_worked > 80) then



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(formula_message = 'You are within the working limit.'formula_status = 'S')else(formula_message = 'You have worked too many hours.'formula_status = 'E')return formula_message, formula_status

Calculation formula at element or element eligibility level:

inputs are hours_worked, rate, comment(text)if(hours_worked > 80) then(rate = rate * 1.2 comment = 'Your rate has been increased')return rate, comment

Defaulting formula at element or element eligibility level:

if(CATEGORY = 'S') then(rate = 20)else(rate = 30)rate_code = 'B'return rate, rate_code

Formula Result Rules for ElementsAn element's status processing rule identifies the formula that the payroll run uses to process the element for workers with aspecified assignment status. For each status processing rule, formula result rules determine what happens to each result thatthe formula returns.

Status Processing RulesAn element can have one status processing rule for all assignment statuses, or a different rule for each status. For example,you could have two rules for a Wages element: Standard Wages and Paid Training Leave.

Formula Result RulesFormulas return formula results such as the amount to be paid, or a message. Results can update the current element entryor another target element entry with a lower processing priority, meaning that it's processed later in the run.

The following table explains the available result rules.

Results Rule Purpose

Direct Result

The element's run result, or a direct result updating one of the element's input values.

Indirect Result

An entry to a nonrecurring element that has a lower processing priority. The target element must beat the same employment level as the source element.



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Results Rule Purpose

Message A message issued by the formula under certain conditions. For example, a formula can check a loan

repayment balance and, if the balance is zero, issue the message Loan is repaid.

There are three severity levels for a message rule:

• Error - This causes the run to roll back all processing for the employment record.• Warning - This does not affect payroll processing but warns you of a possible problem.• Information - This does not affect payroll processing.

Order Indirect

Updates the subpriority of the element you select in the Target Element Name field.

Stop

Uses the Date Earned of the payroll run to stop the processing of a recurring entry. A stop rule canbe based upon reaching a specified accumulator, such as a balance owed of zero. The date uponwhich the total owed is reached appears on the Element Entries page as Settlement Date. Theentries are not actually end dated but stopped from future processing. This supports retroactiveprocesses which impact the total owed balance. You should define the target element with Allow Multiple Entries selected. This enables you toallocate a new entry once the value of an existing entry has reached zero. For example, once anemployee has repaid a loan you can add a new loan entry for the employee. If you add a new stopentry for the same element type, use balance contexts to differentiate between the owed balances.

Note: If you do not select Allow Multiple Entries and you want to add a second loan afterthe first loan has been stopped by a payroll run, end date the first loan before creating thesecond loan.

Target Indirect

An entry to a nonrecurring element that has a lower processing priority, where the target elementis defined at a different employment level than the element being processed. For example, youcould use a Target Indirect rule to update the input value of an assignment-level element from theprocessing of a payroll element.

Element Eligibility

Element EligibilityElement eligibility determines which people are eligible for an element. To determine eligibility, you select the criteria thatpeople must have to receive entries of the element.

Eligibility CriteriaYou can define element eligibility using the following criteria.

Level Available Criteria

Payroll Relationship

Payroll Statutory Unit Relationship Type



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Level Available Criteria

Items Assignment

Legal Employer Department in which the person works Job, for example, associate professor or secretary Grade Employment Category People Group Legal Employer Department, same as in Items Job, same as in Items Grade Employment Category People Group

Note: You set up all the people groups that are appropriate for your enterprise. For example,you could decide to group people by company within a multi-company enterprise, and byunion membership.

Location of person's office Position, which is a class of job performed in a particular organization, for example, associateprofessor of chemistry, or finance department secretary. Payroll All payrolls eligible

Tip: You must define element eligibility for every element, including predefined elements. If you want the elementto be available to all workers, add an eligibility name and save the element eligibility record with no additionalcriteria selected. This is the usual practice for compensation and benefit elements where you determine eligibilityusing eligibility profiles.

Examples of Eligibility CriteriaIn the following examples, you restrict who can receive an element entry:

• Your enterprise provides company cars only to people in the sales or customer support departments. You createtwo eligibility records, and use the Department field to specify the eligibility criteria. Select Sales Department for onerecord and Customer Support for the second record.

• You enterprise offers a production bonus to people who work full-time in production and are on the weekly payroll.You create one eligibility record and select Full-time regular in the Employment Category field, Production in theDepartment field, and Weekly in the Payroll field.



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Multiple Rules of EligibilityYou can define more than one eligibility record for each element, but there must be no overlap between them.

For example, you can create one record for the combination of grade A and the job of accountant. However, you can't createone record for grade A and a second for the job of accountant. These rules would imply that an accountant on grade A iseligible for the same element twice.

If you have more than one element eligibility record, you can enter different default values and costing information for eacheligibility group.

Maintain Element EligibilityAfter saving an element eligibility record, you can only make certain changes. You can't update the eligibility criteria.

The following table summarizes the actions you can take.

Action Result

Change the input value default valuesand validation

These changes affect all new entries, and updates to existing entries. Changes to runtime defaultsaffect existing entries too.

Delete the element eligibility record

Existing recurring entries are ended automatically when you end the element's eligibility.

Note: You can't delete the element eligibility record if any nonrecurring entries exist atthe date you want to end the record. You must delete existing entries before you end theelement's eligibility.

Add Eligibility Rules for Predefined ElementsIf the country extension on the Manage Features by Country or Territory page is set to Payroll or Payroll Interface, you mustadd element eligibility records for predefined statutory deduction elements before you hire any workers.

To search for the predefined elements:




Task: Manage element2. Click Go to Task.3. Search for the predefined elements, which are as follows:

Country or Territory Predefined Element

US, Canada, Mexico

US Taxation, CA Taxation, MX Taxation



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Country or Territory Predefined Element

Australia, India, Singapore

Statutory Deductions

Kuwait, Saudi Arabia, United ArabEmirates

Social Insurance Gratuity

China

Aggregation Information

UK

Tax and NI Pensions Automatic Enrollment

Netherlands

Tax and Social Insurance Calculations

France

French Payroll Processing

Note: There are no predefined elements that require eligibility rules for Germany, Ireland, Switzerland, or HongKong.

To add eligibility rules:

1. Click the element name to open the Element Summary page.2. Enter a date in the Effective As-of Date field.

You are recommended to use the start date of the element, which is 1/1/1901.3. Enter a name for the eligibility rule and click Submit. Since you haven't selected any eligibility criteria, all employees

are eligible for the element.4. Click Done.

Voluntary Deductions

How You Define Voluntary and Pre-statutory DeductionsUse the Manage Elements task to define voluntary and pre-statutory deductions, such as pensions. You manage pensiondeductions through calculation cards or element entries, depending on country-specific rules. You manage other voluntarydeductions, such as gym membership, union membership, and charity donations, through element entries.

Use these steps to set up deductions:

1. Define the elements.2. Define the third-party payees.3. Define a third-party payment method for each third-party payee.4. Enter the deduction details for each person. Do this in the following ways, depending on the deduction type and your

setup:

◦ Configure a Benefits and Pensions calculation card.



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◦ Define element entry.

◦ Load benefit batches.

Defining ElementsWhen you define a pension plan deduction, if you select the Benefit category, or it's selected for you, the element templatedefines a calculation component. You add this component to Benefits and Pensions calculation cards to assign it to yourworkers.

To define other voluntary deductions:

• Select the Standard category.

This selection means you manage these deductions using the Manage Element Entries task.

• After defining the element, you must add a Payee input value and select Third-Party Payee as the special purposefor it.

If appropriate, enter a default value on the element or element eligibility record to populate the third-party payeedetails.

Defining Third-Party PayeesTo define third-party payees, use the Manage Third Parties page in the Payment Distribution work area.

For pensions, select the Organization payee type and select the Pension Provider party usage code.

Defining Third-Party Payment MethodsTo define payment methods for all external payees, use the Manage Third-Party Payment Methods task in the PaymentDistribution work area.

Entering Deduction Details for Each PersonFor pensions using the Benefit category:

1. Configure a Benefits and Pensions calculation card for the worker.2. Add your new pension calculation component to the card.3. Enter the payee and other details.

If you load your pension information using the Load Benefit Batches process, the payroll application configures the calculationcard automatically. Before running this process, you must generate an XML file that contains the data you want to transfer topayroll.

For other voluntary deductions, you must define element entries. If the payee is not defaulted from the element or eligibilityrecord, enter the payee on the element entry.

Related Topics

• Creating Third-Party Payment Methods

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Create Elements for Pension DeductionsThis example shows you how to create a pension deduction element using an element template. Follow these steps in thePayroll Calculation work area:

1. Create a pension deduction element2. Create an eligibility record for the deduction

Creating a Pension Element1. In the Payroll Calculation work area, click Manage Elements.2. Click Create.3. Complete the fields, as shown in this table.

Field Value


Your Legislative Data Group


Voluntary Deductions or Pre-statutory Deduction

Secondary Classification

Appropriate classification for your country or territory, such as Pension Plan After Tax

Category

Benefit

4. Click Continue.5. Complete the Basic Information page. For the latest entry date:

◦ Select Last Standard Earning Date if you enable proration for the element.

◦ Otherwise, select Last Standard Process Date.

6. Click Next.7. On the Additional Details page, enter the calculation rules and limits for the deduction. The following table

summarizes your choices.

Rules What You Can Enter

Calculation rule

Fixed amount or percentage

Age limits

Minimum and maximum age

Maximum contribution amount

Any numeric value

Pensionable earnings limit

Minimum and maximum amount

Additional contributions allowed

Yes, or no. If yes, select calculation rule.

Employer contributions allowed

Yes, or no. If yes, select calculation rule, age limits, and amount limits

Overrides allowed Yes, or no



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Rules What You Can Enter

Element subject to proration

Yes, or no

8. Click Next.9. Verify the information is correct.

10. Click Submit.The template creates a recurring element at the payroll relationship level. It also creates a calculation component withthe same name as the element. You add this component to workers' calculation cards.

Creating an Eligibility Record for the DeductionOn the Element Summary page, you can create as many eligibility records as you require:

1. In the Element Overview section, click the Element Eligibility link.2. Select Create Element Eligibility from the Actions menu.3. Enter a name for the eligibility record.4. Select any criteria if you want to restrict who can pay this deduction.5. Click Submit.6. Click Done.

Considerations to Enter Calculation Values for PensionsCreate a Benefits and Pensions calculation card for each worker who pays a pension deduction. On the card, selectthe calculation component that was created automatically for your pension element, and enter the required contributionamounts and limits, as described in this topic. If you use the Load Benefit Batches process to transfer values from a benefitsapplication, this process creates the calculation cards for you and enters the contribution amounts and limits.

Default Contribution Amounts and LimitsYou enter some default contribution amounts and limits when you create the pension element. These default values arestored as calculation value definitions. You can edit the default values using the Manage Calculation Value Definitionspage. You can also add a default payee or a separate payee for each employee by entering the payee ID in the EnterableCalculation Values area on the Calculation Cards tab.

Enterable Calculation Values for PensionsTo enter or override a calculation value for one worker, follow these steps:

1. Open the worker's Benefits and Pension calculation card on the Manage Calculation Cards page.2. Add the calculation component for the pension, if it isn't already on the card.3. With this calculation component selected, click the Enterable Calculation Values on Calculation Cards tab.4. Click Create.5. Select the value you want to enter. Typically, you will enter a payee, reference number, and any additional

contributions. You can also override any default contribution amounts or limits.

The following table lists the calculation values you can enter.

Note: If the calculation component was created by running the Load Benefit Batches process, you can onlyenter or override the following values: Payee, Reference Number, and Employee Additional Contribution.



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Field Required Default Provided at ElementSetup

Values

Payee

Y

N

Enter the ID of an organizationwith the usage of PensionProvider.

Reference Number

Y or N

N

Free text Depending on the localizationrules this field may or may not berequired.

Employee Contributions

Y

Y

Percent or flat amount asper element setup. Enterpercentages as decimal values.

Additional EmployeeContributions

N

N

Percentage or flat amount asper element setup, if additionalcontributions are allowed.

Minimum Age

N

Y

Numeric age

Maximum Age

N

Y

Numeric age

Maximum Contribution Amount

N

Y

Numeric amount

Minimum Pensionable Earnings

N

Y

Numeric amount

Maximum Pensionable Earnings

N

Y

Numeric amount

Partial Deduction Allowed

Y

Y

Values = Y or N

If the element was set up to allow an employer contribution, you will also see these enterable values:

Calculation Value Required Default Provided at ElementSetup

Values

Employer Contribution

Y

Y

Percentage or flat amount as perelement setup

Minimum Age Limit for EmployerContribution

N

Y

Numeric entry

Maximum Age Limit for EmployerContribution

N

Y

Numeric entry

Maximum Contribution Amountfor Employer Contribution

N

Y

Numeric amount



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Calculation Value Required Default Provided at ElementSetup

Values

Minimum Pensionable EarningsLimit for Employer Contribution

N

Y

Numeric amount

Maximum Pensionable EarningsLimit for Employer Contribution

N

Y

Numeric amount

Involuntary Deductions

How You Add Involuntary Deductions to a Calculation CardYou use element templates to create the involuntary deduction elements supported for your legislation, such as bankruptcyorders, garnishments, child support payments, tax levies, and educational loans. The templates also create calculationcomponents, which you can add to a personal calculation card, so the deductions are processed during a payroll run.

This figure shows the steps involved in creating an involuntary deduction and adding it to a personal calculation card:

Create Third-Party Payees

Create Third-Party Payment Methods

Create Involuntary Deduction Element

Create Involuntary

Deduction Card

Add Involuntary Deduction

Component to Card

Enter Values for Deduction

Amounts and Fees

Create Personal Deduction Card

Process PayrollElement Entry

Created for Related Element

PrerequisitesBefore you can add an involuntary deduction to a personal calculation card, you must first:

• Create a third party to receive the payment.



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• Create a third-party payment method.

• Create an involuntary deduction element.

You can create multiple elements for the same involuntary deduction type if processing information or other detailsvary. For example, each jurisdiction you deal with may have different processing rules for court orders.

Creating an Involuntary Deduction Calculation CardFollow these steps:

1. In the Payroll Administration or Payroll Calculation work area, click the Manage Calculation Cards task.2. Search for and select the payroll relationship.3. If the person doesn't already have an involuntary deduction calculation card, click Create.4. Enter a start date for the card and select the involuntary deduction card type.5. Click Continue.

Adding the Calculation Component to the Calculation CardYou can add multiple calculation components for the same or different involuntary deduction types. For example, you couldadd two child support components and one garnishment component to the same calculation card.

On the Manage Calculation Cards page:

1. In the Calculation Components section, click Add Row.2. Select the calculation component with the same name as the involuntary deduction element.3. Optionally, enter a number in the Subprocessing Order field if the calculation card will include more than one

calculation component.

By default, the payroll run processes these element entries in order by date received, starting with the oldest entry.4. Enter a reference code to uniquely identify this deduction, such as a court order number, case number, or other

identifier provided by the issuing authority.5. Complete the fields on the Calculation Component Details tab.

◦ In the Involuntary Deduction Payment Details section, select all payees for the deduction.

The payee fields display all third-party person payees associated with this payroll relationship and all externalpayees defined for your legislative data group.

◦ In the Involuntary Deduction Rules section, specify the information you require, including:

• The date the involuntary deduction order was received• The issuing authority (such as a court)• The frequency of the deduction such as monthly or weekly, regardless of the payroll frequency. If you

leave the Frequency field blank, the application uses the payroll frequency.

Entering Values for the Deduction AmountsYou enter the order amount, fee, or other amounts used in the calculation on the calculation card. The values you enterreplace any default values defined in calculation value definitions. The default order amount for an involuntary deduction istypically zero.

To create overrides on the Enterable Calculation Values on the Calculation Cards tab, complete the fields as shown in thefollowing table. The values you can enter may vary by country or territory, but typically include the items described in the tablebelow.



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Note: For most values, you can enter either an amount or a rate. Enter a rate if you want the application tocalculate the amount as a percentage of available pay. For example, to define a rate of 20 percent for the orderamount, create an Order Amount (Rate) value. Then enter 20 in the Rate field.

Calculation Value Description

Order Amount

Rate or amount paid to the Order Amount Payee based on the frequency you specified. For example, if you specified a frequency of monthly in the component details, enter the amount todeduct each month, regardless of the payroll period. The application automatically calculates thecorrect amount to deduct in each payroll period. If you leave the Frequency field blank, this amount is deducted at the payroll frequency defined atthe assignment level.

Organization Fee

Rate or amount paid to the Organization Fee Payee each time the deduction is processed.

Person Fee

Rate or amount paid to the Person Fee Payee each time the deduction is processed.

Processing Fee

Rate or amount paid to the Processing Fee Payee each time the deduction is processed.

Initial Fee

Rate or amount paid to Processing Fee Payee the first time this deduction is processed.

Maximum Withholding Amount andMinimum Withholding Amount

Maximum and minimum rates or amounts that can be withheld in one payroll period for thisdeduction.

Maximum Withholding Duration

The number of days after the Date Received that the order is valid. For example, a court order mightonly be valid for 90 days after the date issued.

Protected Pay Amount

Amount of the employee's pay that is exempt from this deduction. Only pay exceeding this amountis included in the deductible amount (available for the deduction).

Exemption Percentage

Percentage of the employee's pay that is exempt from this deduction.

Related Topics

• Creating Third Parties Options


Fee and Proration Rules for Involuntary DeductionsCreating an involuntary deduction creates calculation value definitions that include predefined fee and proration rules. Theserules vary by country and territory.

The following table describes the global rules:




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Rule Processing

Fee

Deduct the fee first, before calculating and paying the deduction amount.

Proration

Use the first come, first serve method. If a person has multiple orders and there is insufficient money to pay them all, pay the deductions inthe order in which they were received. Start with the oldest.

You can override these predefined fees and proration rules. For details, see the topic Involuntary Deduction Calculation ValueOverride Details for the US in the Help Portal.

Examples of Involuntary Deduction ProcessingProcessing rules may vary by the legislation or the legal authority issuing the order for an involuntary deduction. Theseexamples illustrate the processing of fees, protected pay amounts, and when employees have multiple assignments andpayrolls.

Payroll processing first calculates disposable income using the disposable income rules. Then it looks at the exemption rulesto calculate the amount exempt from withholding. Using these amounts, it can calculate the amount available to deduct.

Note: The payroll process calculates disposable income once, based on the highest processing priority cardcomponent. The exception is regional tax levies, which have a separate disposable income calculation.

Use these examples to understand how involuntary deductions are processed in different scenarios:

• Involuntary deduction has initial fee and processing fee

• Deduction amount exceeds protected pay amount

• Employee has multiple assignments and payrolls

• Multiple orders exist with different protected pay amounts

Involuntary Deduction Has Initial Fee and Processing FeeScenario: An employee in Country 1 is issued a court order for a monthly garnishment of 500. The order is subject to twofees. Both fees are paid to the agency responsible for administering the account. The agency then forwards the payments tothe recipients:

• A one time initial fee of 10

• A monthly processing fee of 10

On the involuntary deduction calculation card:

1. Add a calculation component for a garnishment.2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee and the Processing Fee Payee. The processing fee payee is also theinitial fee payee.

◦ Select Monthly in the Frequency field.

3. In the Enterable Calculation Values tab, enter the following values:



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Field Value

Order Amount

500

Processing Fee

10

Initial Fee

10

Payroll Run Results:

• The amount of the employee's pay subject to deduction is 1000.

• During the first monthly payroll after the court order is received, both the initial fee amount and the processing fee arededucted. The total deduction amount is 520.

• In subsequent payroll runs, the order amount and the processing fee are deducted. The total deduction amount is510.

Deduction Amount Exceeds Protected Pay AmountScenario: An employee in Country 2 is issued a court order for the amount of 100 per month. However, protected pay rulesdefined for the deduction require that the employee take home at least 700, after all deductions.


1. Add a calculation component for a court order.2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee and the Processing Fee Payee.


3. In the Enterable Calculation Values tab, enter the following values:

Field Value

Order Amount

100

Protected Pay

700


• The amount of the employee's pay subject to the deduction is 750.

• A deduction amount of 100 would leave only 650 for the final pay amount. Therefore, only 50 is deducted for themonth.

• The remaining balance of 50 isn't placed in arrears, based on processing rules defined for this deduction.

Employee Has Multiple Assignments and PayrollsScenario: An employee has one payroll relationship with two assignments. They receive paychecks from two differentpayrolls. One payroll is run on a weekly basis. The other is run on a monthly basis.



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The employer receives a court order to deduct 200 per month from the employee's wages. The court order amount mustbe deducted from all available money, regardless of the payroll. If the total order amount can't be deducted from the firstpayroll run, then the following occurs. The remaining balance must be deducted from one or more subsequent runs duringthe month, until the full amount is paid.


1. Add a calculation component for a court order.2. In the Calculation Component Details tab:

◦ Select the Order Amount Payee.


3. In the Enterable Calculation Values tab, enter the following value:

Field Value

Order Amount

200


• During the first weekly payroll run, only the amount of 50 can be deducted, leaving an amount owed of 150 for themonth.

• When the next weekly payroll is run, the deduction can't be taken due to insufficient pay; the balance for the monthremains 150.

• The monthly payroll runs before the next weekly payroll is run. The remaining amount of 150 owed for the deductionis taken during the monthly payroll run.

• No money is deducted during the subsequent weekly payroll runs for this month.

Note: If a person has two assignments for different payroll relationships, they would typically be issued twodifferent court orders, one for each employment. In this case, you would add each court order to a differentcalculation card.

Multiple Orders Exist with Different Protected Pay AmountsScenario: An employee in Country 2 has three court orders. Each court order has a different protected pay amount.

1. On the involuntary deduction calculation card add three calculation components for child support.2. For each calculation component, select Monthly in the Frequency field.3. Define the protected pay and order amount values for each deduction as shown in the following table:

Involuntary Deduction Protected Pay Amount Order Amount Date Received

Child Support 1

500

1000

23 January 2012

Child Support 2

600

1100

2 February 2012

Child Support 3

1000

1200

2 February 2012




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The net amount available for involuntary deductions in the payroll run is 2000 GBP. Based on the processing priority definedfor child support payments, the payroll run processes the involuntary deductions in order by date received.

Here's the result:

• Child Support 1 is paid in full, leaving 1000 available for other deductions.

• Child Support 2 is paid an amount of 400 (1000 less protected pay of 600).

• Child Support 3 is not paid. The total amount is placed in arrears, based on processing rules defined for thededuction.

Net-to-Gross Earnings

How Net-to-Gross Earnings are CalculatedWhen you create an earnings element, you can indicate that it pays a specified net amount. Use this feature, if you need topay a person:

• Guaranteed take-home pay (net) per payroll period

• Bonus of a specified net amount

To create an earnings element, use the Manage Elements task in the Payroll Calculation work area.

You can create a net-to-gross (gross-up) element for any recurring or nonrecurring earnings element using these primaryclassifications:

• Standard Earnings

• Supplemental Earnings

• Taxable Benefits (Imputed Earnings)

Settings That Affect Net-to-Gross ProcessingDefine the deductions that are used to calculate the gross amount from the specified net amount.

You must create the element as a gross-up element by answering Yes to the Use this element to calculate a grossamount from a specified net amount? prompt in the element template.

In each element entry, specify the limits of the gross-up processing as follows:

• In the Net value, enter the value you want the employee to receive.

• In the To Within value, enter the allowed difference between the desired amount and the actual amount. This limitcan't be 0.

Note: If these values are the same across most entries, you can enter a default value on the element eligibilityrecord.

How Formulas Calculate the Gross AmountThe formulas for net-to-gross processing perform these actions:

1. The predefined GLB_EARN_GROSSUP iterative formula takes as input the desired net amount (Net input value) andthe amount by which net can differ from the desired amount (To Within input value).



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2. In the first run, the formula performs these actions:

a. Sets the lower gross limit to the desired net amount, and the higher gross limit to twice the desired amount.b. Runs a function to provide the first guess of the gross.c. Returns three values to the element's input values: low gross, high gross, and additional amount.

3. The element's payroll formula runs. The formula adds the additional amount to the desired amount to create thegross amount and returns this value to the element's pay value for the payroll run to process.

4. In the next iteration, the iterative formula compares the additional amount to the total value of the balances that areavailable for gross-up for this element entry. The additional amount must not differ from this balance total by morethan the amount you specified in the To Within field.

◦ If the additional amount equals the balance total, the iterative processing ends.

◦ If the additional amount is higher or lower than the balance total by an acceptable margin, the processingends. The formula returns the remainder (additional amount minus balance) to the element's Remainder inputvalue.

◦ Otherwise, the formula runs the function to generate a better estimate for gross, using the remainder todetermine by how much to change the guess. The formula checks the results in another iteration.

Related Topics

• Overview of Using Formula Components

Create a Net-to-Gross Earnings ElementThis example demonstrates how to create a net-to-gross (gross-up) earnings element when an organization wants to pay aperson a specific net amount on a bonus.

Before you create your earnings element, you may want to determine the following:


What is the primary classification of thisearning?


Is the element recurring or nonrecurring?

Nonrecurring

Who is the bonus recipient?

Linda Swift

How much is the bonus?

1000

What is the allowed difference betweenthe specified bonus and the actualamount paid?

.05

What is the calculation rule?

Flat amount




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Creating the Earnings ElementPerform the following steps to create the element:

1. In the Payroll Calculation work area, click Manage Elements.2. Click Create and then select the values shown in the table in the Create Element window.

Field Value

Legislative Data GroupLDG1

Primary ClassificationSupplemental Earnings

Secondary ClassificationBonus

CategoryStandard

3. Click Continue.4. On the Create Element: Basic Information page select the values shown in the table.

Field or Question Value

NameBonus

Reporting NameBonus

Effective Date01/01/2013

Should every person eligible for theelement automatically receive it?

No

What is the earliest entry date forthis element?

First Standard Earning Date

What is the latest entry date for theelement?

Last Standard Earning Date

At which employment level should thiselement be attached?

Assignment Level

Does the element recur eachpayroll period, or does it requireexplicit entry?

Nonrecurring

Process the element only once ineach payroll period?

Yes

Can a person have more than oneentry of this element in a payrollperiod?

Yes



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Process and pay element separately orwith other earnings elements?

Process separately and pay separately

Tax this earning across multiple payperiods?

No

Prorate this earning across all periodsduring which it was earned, andconsider it for FLSA calculations,such as for commissions, bonuses,incentives, and other nondiscretionaryearnings?

No

5. Click Next.6. On the Create Element: Additional Details page select the values shown in the table.


What is the calculation rule?Flat Amount

Note: The default value is Flat Amount. Do not change this value. All gross-up earningsmust have a calculation rule of Flat Amount.

What is the default periodicity of thiselement?

Periodically

Periodicity Conversion Rule

Periodic Work Schedule Rate Annualized

How do you want the work units to bereported?

None

Is this element subject toretroactive changes?

No

Use this element to calculate a grossamount from a specified net amount?

Yes

Should this element be included inthe earnings calculation of the FLSAovertime base rate?

No

Should this element be included in thehours calculation of the FLSA overtimebase rate?

No

7. Click Next.8. Click Submit.9. In the Element Overview pane, select and review each input value, as shown in the table.



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Input Value Description

Pay ValueThe gross pay value to be processed in the payroll run, entered by the iterative formula when itcompletes gross-up calculations.

NetThe user-entered flat amount, which provides the iterative formula with the desired net pay.

Low GrossUsed by the iterative formula to hold the lower gross pay guess, which feeds into the next iterationof the formula.

High GrossUsed by the iterative formula to hold the higher gross pay guess, which feeds into the nextiteration of the formula.

RemainderThe amount by which the additional pay to be paid by the employer (gross minus desired net)differs from the total of the balances that are eligible for net-to-gross processing. This amount isreturned by the iterative formula.

To WithinThe amount by which actual net can differ from desired net after normal processing. This amountmust not be zero but can be a nominal amount such as 0.01.

Additional AmountThe amount to add to the desired net to calculate gross pay. This amount is returned by theiterative formula.

Note: Not all input values are visible by default.

Creating Eligibility RulesPerform the following steps to create eligibility rules:

1. In the Element Overview pane, click Element Eligibility.2. Select Create Element Eligibility from the Actions menu.3. In the Element Eligibility Name field, enter Bonus.4. Click Save.

Reviewing Iterative Processing OrderPerform the following steps to review the iterative processing order:

1. In the Element Overview pane, click Bonus.2. In the Advanced Rules section, review the iterative order.

Note: The default value is 1000. If you have more than one iterative element that may be processed in thesame payroll flow, it is important to adjust the iterative order to indicate which should be processed first.Iterative order must be in the reverse sequence of the processing priority numbers. The element with thelowest iterative priority number is reduced first.



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Including Balances in the Net-to-Gross ProcessingPerform the following steps to include balances:

1. In the Element Overview pane, click Balance Feeds.2. Review the balances to which the bonus contributes.3. In the Element Overview pane, click Gross Balance Exclusions.4. Add any balances that have been set to exclude by default if you want to include it on this specific earnings.5. Click Submit.

Creating an Element EntryIn this example, create the element entry for the bonus for Linda Swift.

1. In the Payroll Calculation work area, select Manage Element Entries.2. In the Name field, enter Swift, Linda.3. In the Legislative Data Group field, select LDG1.4. In the Effective As-of Date field, enter 01/01/2013.5. Click Search.6. In the Search Results, select Linda Swift.7. Click Create.8. In the Effective Date field, enter 01/01/2013.9. In the Element Name field, select Bonus.

10. In the Assignment field, select E1026.11. Click Continue.12. In the Net Value field, enter 1000.00.13. In the To Within field, enter .05.14. Click Submit.

Related Topics

• Balances in Net-to-Gross Calculations

Import File Formating

File Format for Importing Absence Entries to PayrollWhen you submit the Load Absence Batches process, you specify the attachment for the XML file that contains the absencedata. This topic explains the XML file format and XML tags you must use in the file.

You submit the Load Absence Batches process from the Payroll Administration work area. The process creates a newcalculation card or updates an existing card for each worker whose absence information is transferred.

XML File Format for Importing Absence Information to PayrollWhen you create a file to transfer absence information to payroll, use the following format.

<ABSENCE_LIST> <ABSENCE>



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<ABSENCE_TYPE> <ACTION> <ABSENCE_ID> <MAPPING_ID> <MAPPING_NAME> <LDG_ID> <LDG_NAME> <HR_TERM_ID> <TERM_NUMBER> <HR_ASSIGNMENT_ID> <ASSIGNMENT_NUMBER> <ABSENCE_RATE_ID> <ABSENCE_RATE_NAME> <ABSENCE_UNIT> <ABSENCE_UOM> <ADJUSTMENT_UNIT> <FACTOR> <CALCULATION_DATE> <PERIODICITY> <ABSENCE_START> <ABSENCE_END> <ABSENCE_DATE_LIST> <ABSENCE_DATE> <LEAVE_DATE> <ACCRUED_DATE> <OVERRIDING_FACTOR> <OVERRIDING_RATE_ID> <OVERRIDING_RATE_NAME> <OVERRIDING_UOM> <OVERRIDING_UNIT> <\ABSENCE_DATE> <\ABSENCE_DATE_LIST> <\ABSENCE><\ABSENCE_LIST>

XML TagsThis table describes the purpose of the tags used in the XML file.

XML Tag Description

ABSENCE_LIST

Outermost tag that contains a set of absences.

ABSENCE

Tag containing information about a particular absence.

ABSENCE_TYPE

Type of absence that is being transferred to payroll, such as accrual, accrual with entitlement, orentitlement.

ACTION

Type of action that will be performed, such as CREATE, REMOVE, and MODIFY.

ABSENCE_ID

Unique identifier for the absence from the source application. Never use the same ID twice toidentify another absence.

MAPPING_ID

Identifier for the payroll component definition, which is used to create the absence in payroll.

MAPPING_NAME

Name used for the mapping.

LDG_ID ID of the legislative data group associated with the record.



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XML Tag Description

LDG_NAME

Name of the legislative data group associated with the record.

HR_TERM_ID

Unique ID for the HR period. You can provide either the TERM_NUMBER or the HR_ TERM_ID. If you provide theTERM_NUMBER then you must also provide the legal employer details.

TERM_NUMBER

Number that identifies the employment periods for the absence.

HR_ ASSIGNMENT_ID

This is the HR Assignments unique ID. You can provide either the ASSIGNMENT_ NUMBER or the HR_ ASSIGNMENT_ID. If you providethe ASSIGNMENT_ NUMBER then you must also provide the legal employer details.

ASSIGNMENT_ NUMBER

Number that identifies the employment assignment for the absence.

ABSENCE_ RATE_ID

Unique identifier for the absence rate.

ABSENCE_ RATE_NAME

Name of the rate used to calculate the payment amount.

ABSENCE_UNIT

Unit of time in which the absence is recorded.

ABSENCE_UOM

Unit of measure being used for the absence (for example, days, hours or weeks).

ADJUSTMENT_ UNIT

Unit of time in which an adjustment is being made to the absence.

FACTOR

Factor that is used in the calculation of the absence.

CALCULATION DATE

Date used for payroll calculations, such as the payment calculation for maternity leave based on thebaby's due date.

PERIODICITY

Used with the amount or rate, the periodicity is the frequency that determines the absence rate.

ABSENCE_START

Date the absence started.

ABSENCE_END

Date the absence ended.

ABSENCE_ DATE_LIST

List of dates in which the absence occurred.

ABSENCE_DATE

Date the absence is being reported.

LEAVE_DATE

Date on which the leave of absence occurred.

ACCRUED_DATE

Date on which the absence was accrued.



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XML Tag Description

OVERRIDING_ FACTOR

Factor that is being used to override the calculation of the absence.

OVERRIDING_ RATE_ID

Unique identifier for the rate being used to override the absence.

OVERRIDING_ RATE_NAME

Name of the overriding rate that will be used to calculate the absence.

OVERRIDING_UOM

Unit of measure being used to override the absence (for example, days, hours or weeks).

OVERRIDING_ UNIT

Unit of time in which an override is being made to the absence.

Related Topics

• Importing Absence Entries to Payroll: Procedure

File Format for Importing Pension Deductions to PayrollWhen you submit the Load Benefit Batches process, you specify the attachment for the XML file that contains the benefitdata. This topic explains the XML file format and XML tags you must use in the file. You submit the Load Benefit Batchesprocess from the Payroll Checklist or Payroll Administration work areas. The process creates a new calculation card orupdates an existing card for each worker whose pension information is transferred.

XML File Format for Importing Pension Deductions to PayrollWhen you create a file to transfer pension deduction information to payroll, use the following format.

<BENEFIT LIST><BENEFIT>...<ACTION><BENEFIT_ID><MAPPING_ID><LDG_ID><LDG_NAME>{<HR_TERM_ID><TERM_NUMBER><HR_ASSIGNMENT_ID><ASSIGNMENT_NUMBER>}<LEGAL_EMPLOYER_ID><LEGAL_EMPLOYER_NAME><BENEFIT_START><BENEFIT_END>{<BENEFIT_RATE_ID><BENEFIT_RATE_NAME> |<AMOUNT><PERIODICITY><BENEFIT_MAX_ELECTION><BENEFIT_REF_NUMBER>}</BENEFIT></BENEFIT_LIST>

http://www.oracle.com/pls/topic/lookup?ctx=fa19c&id=E3F030648DF790B3E040D30A68810825



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XML Tag Description

BENEFIT_LIST

Outermost tag that contains a set of benefits.

BENEFIT

Tag containing information about a particular benefit.

ACTION

The type of action that will be performed, such as CREATE, REMOVE, and MODIFY.

BENEFIT_ID

Unique identifier for the benefit from the source application. Never use the same ID twice to identifyanother benefit.

MAPPING_ID

Identifier for the payroll component definition, which is used to create the benefit in payroll.

LDG_ID

ID of the legislative data group associated with the record.

LDG_NAME

Name of the legislative data group associated with the record.

HR_TERM_ID

Unique ID for the employment period. You can provide either the TERM_NUMBER or the HR_ TERM_ID. If you provide theTERM_NUMBER then you must also provide the legal employer details.

TERM_NUMBER

Number that identifies the employment period for the pension deduction.

HR_ ASSIGNMENT_ID

Unique ID for the assignment. You can provide either the ASSIGNMENT_ NUMBER or the HR_ ASSIGNMENT_ID. If you providethe ASSIGNMENT_ NUMBER then you must also provide the legal employer details.

ASSIGNMENT_ NUMBER

Number that identifies the employment assignment for the pension deduction.

LEGAL_ EMPLOYER_ID

ID of the legal employer name that the assignment belongs to.

LEGAL_ EMPLOYER_NAME

Legal employer name that the assignment belongs to.

BENEFIT_START

Start date of the benefit.

BENEFIT_END

End date of the benefit.

BENEFIT_ RATE_ID

ID of the rate that will be used to calculate the payment amount.

BENEFIT_ RATE_NAME

Name of the rate that will be used to calculate the payment amount.

AMOUNT Amount that is used to calculate the rate using the periodicity.



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XML Tag Description

PERIODICITY

Used with the amount or rate, the periodicity is the frequency that determines the rate value.

BENEFIT_ MAX_ELECTION

Annual maximum election amount that can be processed.

BENEFIT_ REF_NUMBER

Employee's reference number with the provider of the pension (benefit organization).

Related Topics• Running the Load Benefit Batches Process: Procedure

File Format for Importing Time Entries to PayrollYou import time entries from a third-party provider by submitting the Load Time Card Batches process from the PayrollChecklist or Payroll Administration work areas. When you submit the process, you specify the batch XML file that includesyour time entries. This topic explains the XML file format and XML tags you must use in the file.

You submit the Load Time Card Batches process from the Payroll Administration work area. The process creates a newcalculation card or updates an existing card for each worker with time entries included in the batch.

XML File Format for Importing Time EntriesWhen you create a file to transfer time card entries to payroll, use the following structure.

<TIME_CARD_LIST><TIME_CARD>...<ACTION><TIME_CARD_ID><MAPPING_ID><MAPPING_NAME><LDG_ID><LDG_NAME><HR_TERM_ID><TERM_NUMBER><HR_ASSIGNMENT_ID><ASSIGNMENT_NUMBER><LEGAL_EMPLOYER_ID><LEGAL_EMPLOYER_NAME><TIME_CARD_START><TIME_CARD_END><TIME_ITEM_LIST>...<TIME_ITEM><TIME_TYPE>{<PAYMENT_RATE_ID><PAYMENT_RATE_NAME> |<RATE_AMOUNT><PERIODICITY><FACTOR> |<AMOUNT><PERIODICITY>}<TIME_UNIT><TIME_UOM><TIME_ITEM_START>

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<TIME_ITEM_END><COST_SEGMENTS><SEGMENT1..30></COST_SEGMENTS><PROPERTIES_LIST>..<PROPERTY_ITEM><NAME><VALUE></PROPERTY_ITEM></PROPERTIES_LIST></TIME_ITEM></TIME_ITEM_LIST></TIME_CARD></TIME_CARD_LIST>


XML Tag Description

TIME_CARD_LIST

Parent tag that contains a set of time cards.

TIME_CARD

Object that contains the information about a specific time card.

ACTION

Action to perform, such as CREATE, REMOVE, MODIFY.

TIME_CARD_ID

Unique identifier for this time card.

MAPPING_ID

Identifier for the payroll component definition. Specify the Mapping ID or the Mapping Name. If none is included, the process uses the defaultinterface type Import Time XML and attempts to find a mapping.

MAPPING_NAME

Name used for the mapping. Specify the mapping name or the mapping ID. If none is included, the process uses the defaultinterface type Import Time XML and attempts to find a mapping.

LDG_NAME

Name of the legislative data group (LDG) for this record. Specify the identifier or name of the LDG. All the records in the XML file must belong to the sameLDG. If you don't include the LDG_ID or the LDG_NAME, the application uses the legislative datagroup you entered for the Load Time Card Batches process.

LDG_ID

Identifier for the LDG for this record. Specify the identifier or name of the LDG. All the records in the XML file must belong to the sameLDG. If you don't include the LDG_ID or the LDG_NAME, the application uses the LDG you enteredfor the Load Time Card Batches process.

TERM_NUMBER

Number that identifies the employment terms for the time entry.

ASSIGNMENT_ NUMBER

Number that identifies the employment assignment for the time entry.



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XML Tag Description

TIME_ CARD_START

Start date of the time card.

TIME_CARD_END

End date of the time card.

TIME_ITEM_LIST

Tag that contains a set of time items.

TIME_ITEM

Object that contains information about a specific hour item.

TIME_TYPE

Name supplied by the time application that maps to the payroll element and calculation component.

PAYMENT_ RATE_ID

Identifier for the rate definition used to calculate the payment amount.

PAYMENT_ RATE_NAME

Name of the rate definition used to calculate the payment amount.

RATE_AMOUNT

Actual rate used to calculate the payroll amount.

AMOUNT

Flat amount used to calculate the rate based on periodicity.

PERIODICITY

Frequency that determines the rate value, used with amount or rate amount.

FACTOR

Multiplier applied to the derived rate to calculate the payment amount.

TIME_UNIT

Number of units for the Unit of Measure specified in TIME_UOM. For example, if the UOM is hours, 8units is 8 hours worked.

TIME_UOM

Unit of measure for specifying time unit, such as hours.

TIME_ ITEM_START

Start time for the time entry.

TIME_ITEM_END

Ending time for the time entry.

COST_SEGMENTS

List of the costing segments.

PROPERTY_LIST

Set of properties for the time item.

PROPERTY_ITEM

Additional information that is captured. For example, a value definition for the property item Statewould return State and the name of the State.

NAME

Name of a property for the time item.

VALUE

Value of a property for the time item.



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Related Topics

• Prerequisite Payroll Setup for Importing Time Entries: Explained

• Importing Time Card Entries to Payroll: Procedure

Setting Up Payroll Processing Rules

Frequency RulesUse frequency rules to process a recurring element at a frequency other than the one defined for the payroll. For example,you can use a frequency rule to process a monthly deduction in the third payroll period of the month for employees that arepaid on a weekly basis. For employees that are paid on a semimonthly payroll, you can use a frequency rule to process themonthly deduction in the second period of the month only.

For these cases, you would define a different frequency rule for each element.

You can control how often to process the element. Column headers that display on the Element Summary page are dynamicbased on the frequency period. For example, if the payroll period is weekly, the column headers are Week 1, Week 2, and soon. You then select the periods in which you want the element processed.

Controlling the Processing of Recurring ElementsThe Date field on the Element Summary page provides three values.

This table explains the three options that you can use to control the processing of recurring elements.

Field Value Description How Pay Periods are Derived

Date Earned

Date on which the application processeselement entries for the payroll run.

Uses the pay period end date of the periodthat contains the date earned to determinethe number of pay periods in the month.

Effective Date In this context the effective date is the dateon which the payments are processed.

In most cases this is the date between thefirst day and last day of the payroll period.

Uses the pay period end date of the periodthat contains the effective date to determinethe number of pay periods in the month.

Note: For offset payrolls, where theeffective date is not within the start andend dates of the current period, theend date of the period that contains theeffective date is used.

For example, you have an offset payrollwhere the period start date is 01-February, the end date is 14-February,and the effective date for the process is16-February. In this case the actual periodend date is 28-February because theeffective date (16-February) is between15-February and 28-February.

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Field Value Description How Pay Periods are Derived

Payroll Run Date

Date used by the payroll calculation processto retrieve effective values such as employeedetails.

Uses the payroll run date to determine thenumber of pay periods in the month.

Note: While the payroll run date isessentially the same as the effectivedate, the frequency rules process usesa different method to determine thenumber of the period in the month.

Using the Payroll Run Date Option: ExampleLet's say you deduct pre-tax medical insurance payments twice a month for all employees on your biweekly payroll. In thisscenario, you should select the Payroll Run Date option. Selecting this option ensures that your payroll system doesn'tprocess more than two deductions for the month.

The pay period dates listed in this table are for a biweekly payroll.

Pay Period Pay Period Start Date Pay Period End Date Payroll Run Date

1

19-December-2015

1-January-2016

6-January-2016

2

2-January-2016

15-January-2016

20-January-2016

3

16-January-2016

29-January-2016

3-February-2016

This table describes how the process determines the number of deductions taken for each of the date values when youprocess your January payroll.

Field Value Date Used to Derive the Number of PayPeriods

Number of Deductions Taken for January

Date Earned

Pay period end date

3

Effective Date

Pay period end date

3

Payroll Run Date

Payroll run date

2

Note: Deductions would be taken outfor the first two pay periods only sincethe payroll run date for the third payperiod is in February.



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Restrict Payroll ProcessingSelect rules to control which payroll relationships and which elements to process in a payroll run. For example, a skip ruleor frequency rule. Specify flow parameters when you submit the calculation process to restrict the payroll relationships andfurther restrict the elements that the run processes. For example, Calculate Payroll or Calculate Gross Earnings.

Restrict the Elements Processing Based on RulesWhen you create an element, specify eligibility rules that control who's eligible to receive an element. You can also create skipand frequency rules that control which recurring elements the payroll run processes.

Rules Use To Examples

Skip

Determines whether to include or exclude theelement entry for the person using rules in aformula

A once-each-period rule stops recurringelement entries from processing more thanonce in a payroll period.

Frequency

Specifies which payroll periods to processthe entries

A frequency rule might specify that theformula processes an element only on thefirst and third weeks of a month.

Restrict the Records to Process Based on Flow ParametersSpecify flow submission parameters to restrict the number of records for the calculation process.

Parameter Use To


Restricts processing to the payroll relationships within the group, which you can define using staticor dynamic rules, based on payroll relationship or assignment information.

Element Group

Restricts processing to the elements in the group, which you can define by selecting elementclassifications and including or excluding specific elements.

Run Types Determines which payroll calculations to perform and how to pay the results. The application

processes an element in all the run types, unless you set up the element:

• To process separately• As a trigger for a run type, in which case it's automatically excluded from the other run types

This table shows the flow submission parameters for the calculation process including dates that control which records toprocess:

Date Required? Comments

Process Date

No

Usually the payroll run date of your payrolldefinition.

Payroll Period

Yes

Used to derive other dates for processing.



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Date Required? Comments

Date Earned

Yes Identifies the element entries

• To include in the payroll run• That belong to a proration group and

ended within the payroll period

Related Topics

• Overview of Object Groups

FAQs for Elements

What's the difference between a recurring and nonrecurring element?A recurring element has an entry that applies in every pay period until the entry is ended.

A nonrecurring element has an entry that applies in one pay period only. It's only processed once per pay period. The payrollto which the person is assigned determines the dates of the pay period.

Note: A base pay element associated with a salary basis must be recurring.

What's an element's skip rule?A skip rule is an optional formula that determines the circumstances in which an element is processed. If you specify a skiprule for the element, payroll runs process the element only when the conditions of the formula are met. Otherwise the elementis skipped from processing. You select skip rules on the Manage Elements page.

Related Topics

• Overview of Using Formula Components

How can I create an element for retroactive processing?When you create the element, specify that it's subject to retroactive changes. You can select the predefined retroactiveevent group for the element, or create your own. When an element is subject to retroactive changes, all components for theretroactive element are created automatically. This includes adding the element to the predefined retroactive event group andproration group. You can create your own retroactive event group and proration event group and change the default valuesfor the element in the Manage Element flow.




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When does an element get processed with a processing option ofprocess once per period?The first payroll run of each period processes the element entries. If this option isn't available for your country or territory, youcan select a skip rule to process the element once each period.

What happens if I select the Closed for Entry option for an element?This option prevents the creation of all new element entries for the element. However, it doesn't affect any existing elemententries.

Caution: When hiring, terminating, or updating assignments, this option prevents all element entry creation forthe element, including automatic entries.

Related Topics

• Element Entry Methods

What happens if I manually enter a value in an element entry valuethat has a runtime default value?Any subsequent changes to the default value on the element or element eligibility record won't affect the element entry.However, you can clear your entry if you want to restore the default value.

How do I change the number of decimal places used in element inputvalues?Monetary input values use the number of decimal places defined for the currency, such as two for USD. If your calculationsrequire more decimal places, select a numeric unit of measure for the input value. The level of decimal precision that youspecify must match the precision value set on the Manage Currency page for the country. This ensures that the payrollprocesses and reports used for reconciliation and legislative reporting produce the expected results.

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Chapter 11Setting Up Payment Methods

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11 Setting Up Payment Methods

Organization Payment Methods

Organization Payment MethodsYou must create one organization payment method for each combination of legislative data group, payment type, andcurrency that you use to disburse wages and other compensation. You can also create rules for validating or processing thedistribution of payments. Create as many organization payment methods as required for your enterprise. Use the ManageOrganization Payment Methods page in the Payment Distribution work area.

Important aspects of organization payment methods are:

• Payment types

• Payment sources

• Payment rules

Payment TypesWhen creating an organization payment method, you select a payment type.

The most common payment types are:

• Electronic funds transfer (EFT)

• Check

• Cash

The exact list of payment types and their names can vary by country. Your enterprise may support a different range of typesthat are appropriate for your localization. For example, in the US, the payment type for EFT is Direct Deposit; in the UK it'sBACS, and in Australia it's BECS.

Tip: When selecting the EFT payment type, you can enter EFT information at the payment method level, thepayment source level, or both. Entries at the payment source level take priority over entries at the organizationpayment level. For example, if you define details at the payment source level, then to use those details whenprocessing payments, you must enter the payment source when submitting the payment process.

Payment SourcesIf you're using Oracle Fusion Global Payroll for payroll processing, you must define at least one payment source for eachorganization payment method. Oracle recommends one organization payment method, per payment type, per currency. Eachpayment source must be associated with an active bank account in Oracle Fusion Cash Management. If you define additionaldetails at the payment source level, then to use those details when processing payments, you must enter the payment sourcename when submitting the payment process.

You can use the same bank account in different payment sources in more than one organization payment method, asillustrated in the following example.



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Payment Method Payment Source Bank Account

Check

Bank of America Account A

Bank A - Account 7890045

EFT

Bank of America Account B

Bank A - Account 7890045

Note: If you are costing your payments, enter cost account information on the Manage Costing of PaymentSources page in the Accounting Distribution work area.

Payment Rules and Default Payment sourcesIf you define multiple payment sources, you can use payment rules to determine the appropriate payment source based ontax reporting unit (TRU).

The following example shows one organization payment method with three different payment sources for different TRUs.

Payment Source Tax Reporting Unit Default Payment Source

Payroll EFT Source A Bank A - Account 7890045

None

Yes

Payroll EFT Source B Bank B - Account 1238900

TRU1

No

Payroll EFT Source C Bank C - Account 8765999

TRU2

No

The first payment source that you add is the default payment source, but you can select another payment source as thedefault, or not have a default payment source.

To understand the effect of having a default payment source, consider the following examples that describe what happenswhen a TRU changes, causing a payment rule to be invalid.

Approach Example

With a default payment source, thepayment process pays employees usingthe default payment source.

This approach might suit a company with multiple independent franchises, each with its own TRU. Ifa franchise holder sells the franchise, payments don't fail.

Without a default payment source,the payments process issues errornotifications to ensure that you use theappropriate payment source to fund thepayment.

This approach might suit a company with strict policies about payment rule compliance.



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How Payment Methods and Payroll DefinitionsWork TogetherYou select organization payment methods when creating other objects, such as payroll definitions, third-party paymentmethods, and personal payment methods. This topic describes the functional relationship between organization paymentmethods and the objects that use them.

Functional RelationshipsThe following table describes the functional relationship of organization payment methods with other objects.

Object Function

Personal Payment Method

Associates a person to a payment method, currency, and payment source.

Third-Party Payment Method

Enables separate payment information for payments to third parties who aren't on the payroll.Payments to third parties, such as garnishments or other involuntary deductions, are typicallyprocessed separately from the payroll.

Payroll Definition

Establishes the default payment method for payments to employees who have no personal paymentmethod defined.

Note: You can't set EFT payment methods as default payment methods because eachpayee must have a personal payment method with account information to know where todeposit the money.

Run-Type Payment Method

Overrides a payroll's default payment method for payments to employees with no personal paymentmethod defined. For example, your regular payroll is by EFT but you issue check bonuses once a year. Using theSeparate Payment run type, the payment method overwrites the default payment method of thepayroll.

Related Topics



International Transfer Payment TypeInternational Transfer payment type supports payment methods for electronic funds transfer (EFT) payments to a countrydifferent from the originating payment source. You can create EFT payment methods for employees to transfer funds toforeign banks if an organization payment method with International Transfer payment type exists for your legislative datagroup.

When you create the personal payment method for an employee, select the country where the international bank accountresides.




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In order for you to use this functionality, you must be able to support payments to international bank accounts. For example,the US supports a file format called IAT NACHA, which supports making payments from the US to 'international' bankaccounts.

Configuring Payment Method Preferences: ProcedureYou can configure preferences related to payment methods using a user-defined table and fast formulas. After you createyour formulas for the configuration that you require, you attach formula names as values for the corresponding preferences inthe user-defined table.

1. Use the Manage Fast Formulas task to create the formula using the Payroll User Interface Configuration formulatype.

2. On the Manage User-Defined Tables page, select the legislative data group that you to manage the user-definedtable, and then search for and select PAYROLL_USER_INTERFACE_CONFIGURATION.

Note: The formulas attached in the user-defined table are effective at the enterprise level. Thelegislative data group isn't significant. However, to make any later edits to the table, you must selectthe same legislative data group.

3. Click Edit, and then click Next.4. On the User-Defined Table Values page, click Add and select the row for one of the values, and then click OK.

Value Purpose

Default Organization Payment Method

Controls which payment methods can be created using the simplified user interface.

Execute Personal Payment MethodValidation

Enables validations for personal payment methods that meet the criteria set in the formula. Forexample, an employee can only create one personal payment method with the Pay Card accounttype.

Maximum Number of PersonalPayment Methods

Limits the number of personal payment methods that employees can create.

Payment Types Available to Workers

Limits personal payment methods to be based only on organization payment methods of thespecified payment types.

Prevent Edit Personal Payment Method

Prevents employees from modifying any personal payment method details that meet the criteriaset in the formula, such when the account type is equal to Pay Card.

Show Percentage or Amount

Sets a restriction to display only the Percentage amount type and field on the Manage PersonalPayment Methods page.

5. In the Value field, enter the name of your formula. You must enter the formula name exactly as you created it on theManage Fast Formulas page.

Note: Each preference that you configure must have its own formula.



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Payment Method RulesThe following scenarios illustrate how you might use payment method rules to handle payments to different parties andfrom different payment sources. You set payment method rules on the Manage Organization Payment Methods page in thePayment Distribution work area.

Pay Workers and Third Parties Using the Same Payment SourceYour organization pays all workers and third-party payees from the same source bank account. In this scenario, no specialpayment method rules are required. Ensure that the payment source is set as the default and that you leave the Third-PartyPayment, Tax Reporting Unit, and Payment Criteria fields blank.

Pay Workers and Third Parties in a Specified TRU Using a Separate Payment SourceYour enterprise is based in one tax reporting unit (TRU1), but you have some workers in another tax reporting unit (TRU2).To comply with TRU1 regulations for out-of-TRU payments, you specify a payment source for the TRU2. In this scenario,your payment source for TRU1 is already set as the default payment source, so no change is needed for TRU1. For the TRU2employees:

1. Add a payment method rule.2. Select the TRU2.3. Select the TRU2 payment source.

Pay Workers and Third Parties in the Same TRU Using Separate Payment SourcesYou currently pay everyone in your TRU using Payment Source A. Your company recently employed a private consultant,Jon Moore, from a third-party auditing company. A new company requirement states that payments must come from a newpayment source, Payment Source B. For this scenario:

1. Create John as a third-party person payee.2. In your organization payment method, add the Payment Source B payment source and a new payment method rule.3. In the payment method rule, select the Third-Party Payment check box, Jon's name as the third-party person to

pay, and Payment Source B.

Pay Workers in a Specified Department Using a Separate Payment SourceYou want to pay employees in the Sales and Development departments using different payment sources. For this scenario:

1. Create a payment method rule for each department.2. Enter the department name in the Payment Criteria field.3. Select the TRU and payment source.

This scenario has the following prerequisites:

• An information element exists named Default Payer with an input value named Payment Criteria.

• A formula exists that retrieves department names and the assignment IDs of the employees associated with them.

• The processing rules in the Default Payer element refer to the formula. The result rules target field is set to PaymentCriteria. The returned field is set to the value specified in the formula.



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Setting Up Payment Sources in Organization Payment MethodsExampleThis example demonstrates how to set up payment sources when creating organization payment methods (OPM) for payrollprocessing. You set up payment sources through the Manage Organization Payment Methods task.

In this example, the InFusion company pays its workers by electronic funds transfer (EFT) payments. To comply with taxreporting unit (TRU) regulations for out-of-TRU payments, the company sets payment rules to pay from two different banksbased on TRU. The following table summarizes the key decisions for this scenario.


How many OPMs do you need?

One method to pay by EFT in TRU1 currency.

How many payment sources do you need?

Three. One default payment source for the TRU1, one source forpayments in TRU2, and one source for payments in TRU3.

How many bank accounts do you need?

Three. One for each payment source.

What payment method rules do you need?

Rules for bank accounts used as payment sources based on eachTRU.

Summary of TasksThis worked example includes details for the following tasks you perform when creating OPMs:

1. Creating the basic details2. Adding EFT file information3. Setting up payment sources4. Creating payment rules

PrerequisitesThis worked example assumes that the following tasks are complete:

1. The primary ledger is set up in Oracle Cloud General Ledger.2. The banks, branches, and account information to use as the payment sources are set up in Oracle Cloud Cash

Management.3. The legal entity associated with the legislative data group is assigned to a general ledger.4. TRUs are set up.

Creating the Basic Details1. In the Payment Distribution work area, click Manage Organization Payment Methods.2. In the Search Results section, click Create.3. Select the legislative data group, for example, InFusion LDG.4. Select the date when you want this payment method to be available for use, and then click Continue.



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Tip: Select a date that is on or before the effective date of the payroll definition or other objects that usethis payment method.

5. In the Basic Details section, complete the fields as shown in this table and then click Save.

Field Value

NamePayroll Direct Deposit

Payment TypeDirect Deposit

Note: The available payment types for OPMs can vary by legislation.

CurrencyPayment currency

6. Click Save.

Adding EFT File InformationWhen you select the EFT payment type, you can enter EFT information at the following levels:

Note: EFT file information entered at the payment source level takes priority over information entered at theorganization payment method level

1. Payment source level2. Organization payment method level3. Both levels

Setting Up Payment SourcesPerform the following steps three times to create each payment source.

1. In the Payment Sources section under Payment Source Information, click Create.2. On the Create Payment Source page, complete the fields in order, as shown in this table, and then click Continue.

Field Source 1 Source 2 Source 3

NamePayroll EFT Source 1

Payroll EFT Source 2


Bank Account NameBank A

Bank B

Bank C

Bank Reference123456789

234567890

345678901

Company Reference456789012

567890123

678901234

Tip: Keep your payment source names unique and as specific as possible for each scenario. This namingconvention helps when managing complicated combinations of OPMs and payment rules.



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Creating Payment Rules1. In the Payment Method Rules section, for Payroll EFT Source US, ensure that the default setting is Yes.2. In the same section, click Create and select the values shown in this table to create two payment rules that map a

payment source to a TRU.

Field Source 2 Source 3

DefaultNo

No

Tax Reporting UnitTRU2

TRU3

Payment SourcePayroll EFT Source 2


3. Click Submit.

Deriving Payment Sources by DepartmentYou can use payment criteria to set up rules that derive payment sources within a single tax reporting unit (TRU). Theprepayments process identifies the source bank information using the employee's TRU and any additional payment criteriathat you define. This example uses department, but you can use other criteria, such as business unit.

The tasks to complete this setup are Manage Organization Payment Method, Manage Elements, and Manage Fast Formulas.The key steps in this example are:

1. Define the payment rules in the organization payment method.2. Create the formula to get department names from HR.3. Create the formula that calls the department names formula to get employee department by Assignment ID.4. Create the Default Payer information element.

In this example, the enterprise wants to pay employees in the Sales and Development departments from separate paymentsources. You create an element to pass the department name as a run result value.

Defining Payment Rules1. On the Manage Organization Payment Method page, in the Payment Sources section, create the payment sources

to use in the payment rules, if they don't already exist.2. In the Payment Method Rules section, add one payment rule for each department, as shown in this table.

Field Development Department Sales Department

Tax Reporting UnitTRU 1

TRU 1

Payment CriteriaDevelopment

Sales

Payment SourcePS A

PS B



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Creating the Department FormulaUse the following steps to create the formula that retrieves the database items from HR for department names.

1. On the Manage Fast Formulas page, create the formula with values as shown in this table.

Field Value

Formula NameXX_ Employee_ Department

Formula TypePayroll Access to HR

DescriptionFormula to return the department of an employee


Note: Enter the same date used to create elements during implementation.

2. In the Formula Text section, enter the following content:Default for PER_ASG_ORG_DEPARTMENT_NAME is ' 'l_dept_output = PER_ASG_ORG_DEPARTMENT_NAMEReturn l_dept_output

3. Click Submit.4. Click Compile.

Creating the Payment Criteria FormulaUse the following steps to create the formula that retrieves the departments for employees to use as payment criteria values.

1. On the Manage Fast Formulas page, create the formula with values as shown in this table.

Field Value

Formula NameXX_ Default_ Payer_ Payment_ Criteria

Formula TypeOracle Payroll

DescriptionFormula to use the returned Department database item as Payment Criteria input for DefaultPayer element.


Note: Enter the same date used to create elements during implementation.

2. In the Formula Text section, enter the following content:Default for ASG_HR_ASG_ID is 0SET_INPUT('HR_ASSIGNMENT_ID', ASG_HR_ASG_ID)EXECUTE('XX_Employee_Department') /* Formula to retrieve the



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Employee Department. */Emp_Dept = GET_OUTPUT('l_dept_output','Null')Return Emp_Dept

3. Click Submit.4. Click Compile.

Creating the Default Payer ElementPerform the following steps to create the Default Payer element with the Payment Criteria input value, and automatic elementeligibility.

1. On the Manage Elements page, create an element using the Information primary classification and the values shownin this table, and then submit your changes.

Field Value

NameDefault Payer The name must match exactly. This name is how the application identifies any existing paymentcriteria.

Reporting NameDefault Payer


Note: Enter the same date used to create other elements during implementation.

What is the earliest entry date forthis element?

First Standard Earnings Date

What is the latest entry date for thiselement?

Last Standard Process Date

2. Edit the new element to create an input value named Payment Criteria as follows:a. In the Element Overview section, click Input Values, and then select Create Input Values from the Actions

menu.b. Enter values as shown in this table.

Field Value

Name Payment Criteria

Display Sequence 10

Unit of Measure Character

c. Click Save.3. Edit the new element to create element eligibility that is set to automatic entry as follows:

a. In the Element Overview section, click Element Eligibility, and then select Create Element Eligibility fromthe Actions menu.



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b. In the Element Eligibility Name field, enter Payment Criteria Element Eligibility.c. Select Automatic entry.d. Click Save.

4. Edit the new element to create processing rules as follows:a. In the Element Overview section, click Status Processing Rules, and then select Create Status

Processing Rules from the Actions menu.b. In the Formula Name field, select XX_Default_Payer_Payment_Criteria.c. In the Result Rules section, add a row using the values in this table.

Field Value

Result Returned

EMP_DEPT

Result Rule

Direct Result

Target Input Value

Payment Criteria

d. Click Submit.

Personal Payment Methods

Considerations When You Create AccountsBanks, branches and accounts fit together on the premise of the Bank Account model. The Bank Account model enables youto define and keep track of all bank accounts in one place.

The Bank Account Model can explicitly grant account access to multiple business units, functions, and users. Consider thefollowing when you set up bank accounts:

• Assign a unique general ledger cash account to each account, and use it to record all cash transactions for theaccount. This facilitates book to bank reconciliation.

• Grant bank account security. Bank account security consists of bank account use security, bank account accesssecurity, and user and role security.

Account UseAccount Use refers to accounts created for:

• Oracle Fusion Payables

• Oracle Fusion Receivables

• Oracle Fusion Payroll

Select the appropriate use or uses when creating an account in one or more of these applications.



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Account AccessPayables and Receivables account access is secured by business unit. Before the bank account is ready for use by Payablesor Receivables, you must:

1. Select the appropriate use for the application.2. Grant access to one or more business units.

Note: You can only assign access to the business units that use the same ledger as the bank accounts owningthe legal entity,

User and Role SecurityYou can further secure the bank account so that it can only be used by certain users and roles. The default value for securebank account by users and roles is No. For Payables and Receivables, you must have the proper business unit assigned toaccess a bank account even if the secure bank account by users and roles is No. If the secure bank account by users androles is set to Yes, you must be named or carry a role assigned to the bank account to use it.

• You must assign the security duty role Cash Management Administration to the Cash Manager job role to provideaccess for setting up banks, branches, and accounts. You must have the assigned Manage Bank Account Securityprivilege to modify the User and Role Security.

• If you want to restrict the access to the Security tab, you must create a customized role and remove the privilegeManage Bank Account Security. For example, you would copy the Cash Management Administration duty role,rename it, and remove the privilege.

How Bank, Branch, and Account Components Work TogetherBanks, branches, and accounts fit together on the premise of the Bank Account model.

The model enables you to define and keep track of all bank accounts in one place and explicitly grant account access to:

• multiple business units

• functions

• users

This eliminates the redundant duplicate bank account setup in different business units when these business units share thesame bank account.

BanksCreating a bank is the first step in the bank account creation. You can:

• Search for existing banks to view and update

• Create a new bank from an existing party

Consider the following:

• The option to create from an existing party is implicitly implemented by the matching option.

• The option is available only after the existing party has been found with the same bank.

• If you select the matching option, the page repopulates the information from the matched party.



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BranchesOnce you have created your bank, the next step is creating a branch or branches associated to the bank. The matchingoption is also available when creating branches. To create a new branch without using the matching option, manually enterthe required information. You can also define other branch- related attributes in the same page.

If you don't use the matching option when an existing party is found, a branch with the same party name is created.

AccountsThe four areas associated with defining an account are:

• General information

• Control of the account

• Security and access to the account

• Business unit assignment

Once the bank and branch are created, proceed to the bank account setup by doing the following:

• Select the bank branch you want to associate to your bank account.

• Assign the owner of the bank account.

Note: To create a bank account for Payables or Receivables, add the Business Unit Access first for thebusiness units to use the bank account.

Consider the following:

• The Oracle Fusion Account Payables or Receivables accounts are identified by the business unit.

• The Oracle Fusion Payroll accounts are identified by the legal entity.

• The program, Inactivates Banks and Bank Branches enables you to inactivate all banks and bank branches thathave no active internal and external bank accounts.

Related Topics

• Reconciliation Matching Rules

Enter Bank Information for Personal Payment MethodsYou can enter bank, branch, and bank account information centrally as part of implementation, or you can let employees addtheir own bank information. You can share this information across multiple applications for different purposes.

This table summarizes several approaches to create bank information for employees.

Approach Purpose

Manage Banks page and Manage BankBranches page

View, create, or edit banks and branches centrally for outgoing payments or receiving payments

Manage Personal Payment Methodspage

Create or edit employee bank account details to receive payments

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Approach Purpose

Data Loader

Load personal payment methods and employee bank account details using an integrated Excelworkbook

Control Who Can Manage Banks and BranchesThis table shows the roles that are typically involved in managing bank information, what actions they can take by default, andwhich pages they use.

Role Can Create Banks andBranches?

Can Create Employee BankAccount Details?

Location

Cash Manager

Yes

No

Manage Banks page andManage Bank Branches page. Offerings: WorkforceDeployment Functional Area: Payroll

Payroll Administrator Payroll Interface Coordinator Payroll Manager

Depends on duty role or profileoption

Yes

Manage Personal PaymentMethods page, PaymentDistribution work area

Employee

Depends on duty role or profileoption

Yes

Manage Payment Methodspage, Portrait

You can use a profile option to control access to create bank and branch data. On the Manage Cash Management ProfileOptions page, set the Use Existing Banks and Branches profile option to either Yes or No.

• If you set the option to Yes, you can load bank and branch data. Administrators and employees select bank detailsfrom a list of values on the Create Personal Payment Method page.

• If you set the option to No (default setting), you can't load any bank details. Administrators and employees enter theirbank and branch details as free text.

Related Topics• Payroll User Interface Configuration Formula Type

How Account Number Masking in Payroll Reports WorkTo prevent display of sensitive bank account information on some payroll reports, the application provides you the option ofmasking or encrypting the information.

The following payroll reports display bank account information:

• Payslips

• Payment Register

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• Third-Party Payment Register

Masking involves displaying only a few specific characters of the account number or IBAN number, usually characters atthe start or end of the number. The remaining characters are obfuscated and you cannot see them on the reports. Forexample, a customer may want to display only the last 4 characters of the account number. In such cases, an accountnumber ABC123456 displays as XXXXX3456 in reports and UIs that support masked account numbers.

Encryption requires a secure key for decoding the encrypted account number and IBAN number through an API. Theapplication displays the truncated account or IBAN number when the encryption is turned on and the full, clear number whenthe encryption is turned off.

Settings that Affect Account Number MaskingThe application stores the bank account number and IBAN number information in the tables as follows:

• Original column that stores the visible unmasked portion of the numbers.

• Masked column that stores the masked numbers. When masking is not enabled, these columns store the fullnumbers.

• Secured column that stores the encrypted numbers and requires a secure key to retrieve the data.

The following table shows how the bank account numbers are stored in the tables depending on how you configure maskingand encryption.

Actual AccountNumber

Configuration -Masking

Configuration -Encryption

Original Column Masked Column Secured Column

ABC123456

No

No

ABC123456

ABC123456

ABC123456

ABC123456

Yes

No

ABC123456

XXXXX3456

ABC123456

ABC123456

Yes

Yes

3456

XXXXX3456

ABC123456

Note: The above table assumes that the masking setup displays only the last four characters of the bankaccount number.

• The first row in the table shows the default settings where both masking and encryption is turned off. The original fullnumber is stored in all the three columns.

• The second row in the table depicts a scenario where masking is turned on but encryption is turned off. In this casethe masked column displays only the last four characters of the account number.

• The third row depicts a scenario where both masking and encryption is turned on. In this case the original columncontains the truncated four-digit account number. You need the secure key to retrieve the full account number fromthe secured column.

When you turn on encryption, the unsecured account number and IBAN columns only shows the visible characters as definedby masking. This means that to turn on encryption, you must turn on masking. However, you can turn on masking withoutturning on encryption.



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How Account Number Masking WorksUse the new Extract Unmasked Bank Information (ORA_PAY_UNMASKED_ACCOUNT_INFO) process configurationparameter to display either the masked or full numbers in the reports. This new parameter ensures:

• Consistency across the three reports

• Control how you display the numbers on the reports

The following figure shows how account number masking happens for the three reports.

Tabl

e C

olum

nsXM

L Ta

gsR

TF F

ield

s

Account Number

Clear Account Number

Masked Account Number

ORA_PAY_DECRYPTED_ACCOUNT_INFO

= N or not set

<BANK_ACCOU

NT_NUM/>

ORA_PAY_DECRYPTED_ACCOUN

T_INFO = Y

ORA_PAY_UNMASKED_ACCOU

NT_INFO = Y

ORA_PAY_UNMASKED_ACCOUNT_IN

FO = N or not set

Backward Compatibility for existing customer reports

<MASKED_ACCOUNT_NU

M/>

Account Number Account

Number

Payslip, Payment Register, TPPR

The above figure shows the following:

• The first stream layer shows the table columns that store the account number information.

• The second stream layer shows the XML tags and process configuration groups.

• The third stream layer shows the RTF fields shown on the report template.

As explained in the previous section, the application stores the account number information in three separate columns.

The new ORA_PAY_UNMASKED_ACCOUNT_INFO process configuration parameter controls the MASKED_ACCOUNT_NUM tag to display:

• The masked account number when the process configuration parameter is by default or set to No, or

• The clear or full account number when the process configuration parameter is set to Yes.

For example, if you mail a copy of the Third-Party Payment Register to the payee, you may want to mask the sensitive bankaccount information. If the same report is shared securely within the Payroll Department to verify the bank account details,you may run the report with the process configuration parameter set to Yes.

All the three reports use the MASKED_ACCOUNT_NUM XML field to display the Account Number.



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You can use the BANK_ACCOUNT_NUM field if you use an older copy of the three reports. If you do so and you haveturned on encryption, you can use the ORA_PAY_DECRYPTED_ACCOUNT_INFO parameter to switch between a clear and truncatednumber.

Related Topics

• Options for System Security

• Enable Encryption of Sensitive Payment Information

Third-Party Payment Methods

Creating Third Parties OptionsYou create third parties to process payments to external organizations and people who aren't on the payroll. Use theManage Third Parties task in the Payment Distribution work area or the Batch Loader task in the Payroll Administration,Data Exchange, or Checklist work area to create third-party organizations for payments, such as pension providers orprofessional bodies, or third-party organizations, such as disability organizations. During the creation, third party persons andorganizations are also defined as trading community members in the Trading Community Architecture (TCA), allowing use inother products.

The following figure illustrates the steps to create third parties.

Select Party Type

Person Payee?

Enter Name, Address, Contact

Information

Select Organization

Party Usage Code

Yes

No

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Party Usage CodesCreating third parties on the Manage Third Parties page creates corresponding records for them as trading communitymembers. For third-party persons, the application automatically assigns a party usage code of External Payee. For third-partyorganizations, you assign a party usage code.

The following table describes the party usage codes for third-party organizations.

Party Usage Code Use For Examples

External Payee

Organizations that can be associated withemployee calculation cards or elemententries. Use this party usage code fororganizations when the others don't apply.

State Disbursement Unit for child supportpayments

Payment Issuing Authority

Organizations responsible for issuinginstructions for involuntary deductions, suchas a tax levy or bankruptcy payment order.Payment issuing authorities don't receivepayments.

Court, agency, or government official

Pension Provider

Organizations that provide pensionadministration for employee pensiondeductions.

Stock broker, investment company, benefitadministrator, labor union

Professional Body

Organizations entrusted with maintainingoversight of the legitimate practice of aprofessional occupation.

The American Society for MechanicalEngineers in the US

Bargaining Association

Organizations that represent employeesin negotiations. Bargaining associationsassociated with trade unions may receivepayments for union fees deducted from anemployee's pay.

The Air Line Pilots Association International(ALPA) in Canada and the US

Disability Organization

Organizations that are authorized tomake disability assessments. Disabilityorganizations don't receive payments.

The Royal National Institute of Blind People inthe UK

Related Topics


Examples of Third-Party PaymentsThe following scenarios illustrate how you can pay third-party people and organizations.

Child Support to a Former SpouseWhile this example illustrates payment directly to a third-party person, most child support payments are payable to a third-party organization such as a State Disbursement Unit.




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John Smith is an employee at your organization. Mary Smith receives a child-support payment each payroll period that isdeducted from John's salary. To set up payments for Mary:

1. Create Mary as a third-party person.2. Create Mary's third-party payment method and select the payroll relationship for John.3. Add the child support order to John's involuntary deduction calculation card and select Mary's name in the Order

Amount Payee field.

Organization Processing Fee to a County Sheriff's OfficeThe County Sheriff's office receives an organization fee on garnishment payments. When you create the third-partyorganization, you designate it as an External Payee before you create its third-party payment method. When you add thegarnishment order to the employee's involuntary deduction calculation card, you select the County Sheriff in the OrganizationFee Payee field.

Related Topics


Third-Party Rollup PaymentsA third-party payment is a payment you make to an organization. The organization could be a court, labor union, or a pensionprovider, or persons not on the payroll.

A union can have several of its members belonging to the same employer. An employee can have multiple deductions madeto the same third-party payee, such as multiple child support orders.

Rather than make individual payments, you can combine the individual employee deductions and pay the union through asingle payment instrument. Similarly, you can roll up the multiple employee deduction payments into a single payment.

Use the Run Third-Party Payments Rollup process to consolidate multiple payments made to a third party and generate asingle payment. This process is optional. Additionally, you can generate the third-party payments register and provide thethird-party payee employee and deduction details.

Before you run the Third-Party Payments Register process to view third-party payment details, complete the following tasks:

1. Calculate and verify prepayments2. Run the Third-Party Payments Rollup process3. Generate the payments

Submit the Run Third-Party Payment Register task from the Payroll Checklist or Payment Distribution work areas.

Exclude Third-Party Payment MethodsSome third parties may want an individual check per payment. For example, the UK requires that deduction from earningsorders, such as child maintenance payments, be sent as separate transactions.

Select the Exclude from Third-Party Rollup Process check box on the Manage Third-Party Payment Methods page toexclude a third-party payee from the Third-Party Rollup process. Use the Manage Third-Party Payment Methods task in thePayment Distribution work area to access this page.

Report Third-Party Rollup PaymentsHere's what you can view in the Third-Party Payments Register:

• Individual third-party payments and the corresponding employee deduction information




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• Rollup payments and deduction information of employees who share the same rollup payments

• Consolidated total of each rollup payment

• Payments made to each individual payee

• Consolidated total of multiple deduction payments of each employee

• Component name and component reference of involuntary deductions stored on the calculation cards

• Element name of voluntary deductions

Related Topics

• Overview of Calculate Payment Distribution

Generating Employee and Third-Party Check PaymentsUse the Generate Payments for Employees and Third Parties task from the Payment Distribution work area to generate checkpayments. The process selects employees and third parties who:

• Are processed in the prepayments process for a given payroll

• Have a payment method of check

Before you generate the check payments, you must consider the following:

• An employer can have multiple employee deductions made to the same third-party payee, such as multiple childsupport orders. Rather than make individual payments for each individual employee deduction, use the Third-PartyPayments Rollup process to combine individual employee deductions and make a single payment.

• Run this process to generate your checks for employees and then run the process again to generate checks for yourthird parties. Use the Payee field while running this process to select the appropriate payee.

• You may want to exclude specific third parties from the Third-Party Rollup process because they may want anindividual check per payment. Select the Exclude from Third-Party Rollup Process check box on the Manage Third-Party Payment Methods page to exclude a third-party payee from the Third-Party Rollup process.

• A third-party payee may want the payments on a date that is different from the employee payment date. Forexample, you may want to make employee payroll payments on the last day of the month, whereas, make third-party payments 5 days later. Use the Manage Time Definitions task and create a time definition to define a time spanof 5 days. Select this time definition in the Time Definition field on the Manage Third-Party Payment Methods UI.Enter the relevant process dates, and run the prepayments process, for example, with a process date of 30, June.This stamps the effective employee payments date as 30, June and the third-party payments date as 05, July. Thepayments process runs twice:

◦ Once for the employees with a process end date of 30, June

◦ Once for the third parties with a process end date of 05 July and an overriding payment date of 05 July

• Different banks can have different check templates. To accommodate this requirement, you must first create a reportcategory for each separate bank and check template. Select the created report category for the requisite bank'spayment source so that the process uses the correct check template to generate the check payments. Use theManage Organization Payment Methods task in the Payment Distribution work area to define the payment source forthird-party payments. Attach the correct report category for that payment source. Use the Report Category for Third-Party Payee or Report Category for Worker field in the Payee Information section of the Create Payment Sourcepage.

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• You may want to create a report category for each separate bank and check template by defining report categoriesfor each unique bank and check template combination. The report category for third-party payee and reportcategory for worker are associated to the payment source in the Organization Payment Methods page.

Related Topics• Creating Third-Party Payment Methods

How to Generating Employee and Third-Party Check PaymentsThe Generate Payments for Employees and Third Parties task selects employees and third parties who:

• Are processed in the prepayments process for a given payroll

• Have a payment method of check

Payroll Managers and Payroll Administrators can run this process from the Payment Distribution work area.

PrerequisitesThe prerequisite tasks for the Generate Payments for Employees and Third Parties task include:

• Create the third party and the third party payment method, and associate a deduction from the employee to pay thethird party.

• Add an organization payment method (OPM), including a payment source (the bank details should already be setup).

• Add a payroll definition, including a default payment method of Check, and all valid payment methods.

• Attach a payroll to the employee.

• Attach element entries to the employee.

• Calculate payroll.

• Run the Prepayments process to calculate the distribution of net pay.

• Run the Payroll Archive process to archive the earnings, deductions, tax calculation details, accruals, paymentmethods, and so on.

Generating the Employee and Third-Party PaymentsRun this process to generate checks for your employees and then run the process again to generate checks for your thirdparties. To run the process:

1. Open the Payment Distribution work area, and click Submit a Process or Report from the Tasks pane.2. Select the required legislative data group.3. Select the Generate Payments for Employees and Third Parties task, and click Next.4. Enter a unique payroll flow name.

Note: Name the flow so you can easily identify the process later. This is helpful while searching, so youcan determine what you have already run or if you must roll back any process.

5. Specify the required payroll name.6. Select the payee type for which the check payment process is run. The available options are Employee or Third

Party. You can generate the check payments for either employees or third parties.7. Enter a Process Start Date to define the date range of this process.8. Enter a Process End Date to define the date range of this process.




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9. Select the required consolidation group to view the payments for all payrolls that are included in this consolidationgroup. A consolidation group defines a grouping of different payrolls for reporting purposes. This is not a mandatoryfield. If you don't select a value, the process uses the default consolidation group assigned to the payroll.

10. Select the OPM you want to use for this process. The value you select determines the payment source to make thepayments. There could be multiple payment sources in the OPM.

11. Select the payment source to process for the above payment method. This parameter is optional. If you have definedattributes, such as a payment file limit or report category, at the payment source level, you should enter the paymentsource. When you enter the payment source, the defined attributes are applied.

Note: You can have different payment sources (bank accounts), with different banks, which have differentcheck templates. You must then run the check process for each payment source and each set of payees.Select the correct payment source so that the correct stationary is used for the payments.

To accommodate this requirement, you must first create a report category for each separate bank and checktemplate. Attach the created report category to the appropriate bank's payment source so that the correct checktemplate is used to generate the check payments.

12. Optionally, specify an Overriding Payment Date on which a payment is due to be made to the payee.13. Specify the Start Check Number in the sequence of checks used for payroll processing.14. Specify the End Check Number in the sequence of checks used for payroll processing.15. Select a Process Configuration Group if available. Use a process configuration group to set rules for payroll

processes, such as passwords or number of threads. If you don't select a process configuration group, the processuses the parameters in the default group.

16. Click Next.17. Click Submit.

Related Topics• Examples of Consolidation Group Usage

• Payroll Process Configuration Groups

Reprocessing Rejected EFT Payments

Reprocessing Rejected EFT PaymentsA bank can reject an Electronic Funds Transfer (EFT) payment because of:

• Incorrect bank account details

• Employee has closed their bank account without notifying the employer

Here's what you can do to reissue a check:

• End date the employee's personal payment method

• Inactivate the employee's bank account. You must inactivate the invalid bank account so that it's not used for futurepayments.

• Void the payment and make an external payment against the rejected EFT payment.

Use the Process Bank Corrections File flow pattern from the Payroll Checklist work area to reissue check payments againstrejected EFT payments.



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Before you run the flow, complete these tasks.

1. Transform the information returned by the bank into the requisite Object Group HCM Data Loader file format.2. Provide a unique name in the Object Group Name field each time you create an HCM Data Loader file.3. Load the Object Group HCM Data Loader file into the Oracle Web Center Content server.

Here's the list of payroll tasks the Process Bank Corrections File flow pattern includes:

Task Name Description

1. Upload Bank Corrections File

Stores the information entered in the Object Group HCM Data Loader file into the object grouptable. The bank information is stored in the object group table, under the 'Process InformationGroup' object group type in the payroll application.

2. Update Personal Payment Methods Determines through this built-in logic whether the personal payment method needs end dating or

updating. The logic is as follows:

• If there is a value in the Replacement Bank Number, the Replacement AccountNumber, or the Replacement Account Type field, then the process updates the PersonalPayment Method.

• If any of the above mentioned fields is blank, then the process end dates the PersonalPayment Method.

This task uses the Payment Reference number to identify the Personal Payment Method linked tothe bank account identified as incorrect. It also inactivates the incorrect bank details to stop thembeing used in future payments.

Note: The flow task doesn't create a new Personal Payment Method. You mustcreate one manually.

3. Void Payments

Marks the original payments as void.

4. Make External Payments

Runs the external payment process to ensure that the payments voided in the previous task are paidexternally.

5. Generate Check Payments

Runs the HCM Extract Report to retrieve the check number and other information from the externalpayment record to produce the report output. The delivered HCM Extract Report has a built-in logicto generate the check number, if not available.

Steps 3-5 run only if you have to reissue an external check for a rejected EFT payment.

Note: You can use the delivered default check template or configure the template to include additionalattributes such as a company logo.

Since a payslip is already issued, this flow doesn't generate the payslip.



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Object Group HCM Data Loader Files for Bank ReprocessingBefore you run the Process Bank Corrections File flow, you must use the HCM Data Loader to load the information returnedby the bank. The bank returns a file containing details of the payments that are rejected. You must transform this informationreturned by the bank into the HCM Data Loader .dat file formats required by the Object Group HCM Data Loader.

You must provide a unique name in the Object Group Name field each time you create an HCM Data Loader .dat file. Youmust then load the Object Group HCM Data Loader file into the Oracle Web Center Content server.

The bank information is stored in the Object Group table, under the Process Information Group Object Group Type. Usethe Object Group UI and the name given in the Object Group HCM Data Loader file to view the information loaded by theObjectGroup.dat and ObjectGroupStore.dat files, as part of the Process Bank Corrections Flow.

When you load the ObjectGroupStore.dat file into the Oracle Web Center Content server, a UCM ID is generated. TheProcess Bank Corrections File flow uses the UCM ID to retrieve and use the bank information necessary for the flow.

Load Process Information Group Object GroupCreate and use the following HCM Data Loader .dat files to process the bank information by the HCM Data Loader.

• ObjectGroup.dat file to create the object group

• ObjectGroupStore.dat file to load the bank information returned by the bank

ObjectGroup.dat File FormatThe table below lists the attributes for loading the ObjectGroup.dat file.

HCM Data Loader Attribute Required User Interface Prompt Description

ObjectGroupName

Yes

Name

The name of the object.

ObjectGroupCode

Yes

Doesn't appear on the UI.

The code of the object group.

LegislativeDataGroup

Yes


THE NAME OF THELEGISLATIVE DATA GROUP.

ObjectGroupTypeCode

Yes

The meaning of the code isdisplayed in the Type field.

The code of the object grouptype. The supported value for theprocess information group typeis PROCINFO.

StartDate

Yes

Start Date

The start date of the objectgroup.

EndDate

Yes

End Date

The end date of the objectgroup.

ObjectGroupStore.dat File FormatThe table below lists the attributes for loading the ObjectGroupStore.dat file.



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ObjectGroupCode

Doesn't appear on the UI.

The code of the object group.

LegislativeDataGroup


THE NAME OF THELEGISLATIVE DATA GROUP.

SequenceNumber

Yes

Sequence

A unique identifier for a row ofdata in the object group storefile.

assignmentNumber

Assignment Number

The assignment number ofthe employee whose paymentis rejected, or whose bankinformation needs updating.

paymentDate

Payment Date

The original payment date of therejected payment.

processDate

Process Date

This date overrides the processdate entered in the flow. Thedate entered here is stampedagainst each process in theflow. It's the date the personalpayment method is end datedand the payment is voided.Enter a value if you want oneparticular payment to have adifferent payment date to that ofthe payment date entered in theflow.

paymentReference

Yes

Payment Reference

A unique identifier for a specificpayment line on the originalNACHA file that was sent to thebank.

Amount

Amount

The original amount of therejected payment.

checkNumber

Check Number

The check number used inthe External manual paymenttask and printed on the manualexternal payment checktemplate.

replacementBranchNumber

Replacement Branch Number

Enter a value if the branchnumber (routing transit number)needs updating. If a value isentered in this column, it tells theprocess that the bank accountassociated to the personalpayment method (PPM) used forpayment needs updating.



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replacementAccountType

Replacement Account Type

Enter a value if the employee'saccount type needs updating. Ifa value is entered in this column,it tells the process that thebank account associated to thePPM used for payment needsupdating.

replacementAccountNumber

Replacement Account Number

Enter a value if the employee'saccount number needsupdating. If data is entered in thiscolumn, it tells the process thatthe bank account associatedto the PPM used for paymentneeds updating.

makeExternalPayment

Make External Payment

Enter 'Yes' if you want to voidthe original payment and make amanual external check payment.Valid values for this attribute are'Yes' or 'No'.

Returnreasoncode

Return Reason Code

The reason for rejecting an EFTpayment. The entered value isstamped on the external manualpay record.

Employeename

Employee Name

Name of the employee whosepayment is rejected, or whosebank information needsupdating.

The Update Personal Payment Methods task within the flow determines, through built in logic, whether the personal paymentmethod needs end dating or updating. The logic is as follows:

• If there's a value in the 'Replacement Branch Number' field, the 'Replacement Account Number' field or the'Replacement Account Type' field, then the process updates the Personal Payment Method.

• If any of the above mentioned field is null then the process end dates the Personal Payment Method.

You can delete information loaded to the process information group object group type using the HCM Data Loader. You musttake care when deleting the records, because you can't recover the deleted records.

For more information on creating the HCM Data Loader .dat files and using the HCM Data Loader to upload data, refer to theHCM Data Loader User's Guide on My Oracle Support.

Configuring Payslips and Checks



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How to Add Text to Payslips and ChecksConfiguring your checks and payslips to display additional text requires the setup steps described in this topic. You mustcreate an information element with input values, add the input values to the Organization Information EFF flexfield, and modifythe output template. Depending on your implementation, you also may require a new formula.

Summary of the setup steps:

1. Create the information element, its element eligibility, and the input values you want displayed.2. If you need a formula to calculate the run results, perform the following steps:

a. On the Manage Fast Formulas page, create a formula of type Oracle Payroll to return the values that you wantto add.

b. On the Manage Elements page, edit the information element to:

• Create a status processing rule associated with your new formula.• Add formula result rules to return formula results to the element's input values.

3. On the Manage Enterprise HCM Information page, in the Organization Information EFF section, add the informationelement and input values.

Note: The Organization Information EFF configuration is at the enterprise level. For each LDG for whichyou want to archive payroll information, you must add a separate row for the information element.

4. Create employee element entries, unless you selected the Automatic Entry option for the element.5. After calculating the payroll and prepayments, run the Archive Periodic Payroll Results process.6. Modify the check template or payslip template, as appropriate. Refer to the Report Designer's Guide for Oracle

Business Intelligence Publisher for more information.

Examples of Input Values for Payslip and Check TextYou can create element input values to store information, such as congratulatory messages and detailed earningsinformation, that you want displayed on checks or payslips. The following scenarios illustrate how you can archive payrollinformation for this purpose.

Display Earnings by Earned Weekly PeriodFor example, you want to display earnings details on payslips, such as overtime pay per week within a semimonthly payperiod. In this example, before modifying your payslip template, you create an element using the Information elementclassification. You create the following input values in your element and add them to the payroll information to archive:

• Description

• Start Date

• End Date

• Hours

• Rate

• Multiple

• Amount



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Display a Message on a CheckYou want to display a birthday congratulations message on checks. In this example, before modifying your check template,you could create an element using the Information element classification with the following input values:

• Message Title

• Message Description

Multilanguage Support for PayslipsThe Generate Payslips process is run once each payroll period and it generates the payslip XMLs based on the payroll archiveand prepayments data. The application creates the payslip PDFs and stores them in the Document of Records for futurereference and retrieval.

Print Payslip PDFsSome workers may opt for a printed payslip and you must provide individual PDF payslips to them.

The application supports producing all printed payslips in a single file for ease of printing. However, for the payslip labels to betranslated, each payslip must have its own individual PDF output file. To enable single PDFs, add the Bursting configurationonto the Print Delivery option within the Payslip extract definition.

For more details on how to add the Bursting option, refer to Adding Bursting to Print Delivery Option: Procedure on theOracle Applications Help.

Translate the PayslipYou can now generate individual payslips in the worker's correspondence language of choice. Run the Generate Payslipsprocess just once and generate the payslips for the various workers in a language of their choice depending on what's set asthe worker's correspondence language.

The process translates:

• The metadata, the layout labels, and the static text on the payslip template.

• The underlying data that comes from the transactional and setup tables, and the data that the Payroll Archiveprocess archives for the payslip.

Set the process configuration parameter, Enable Payslip Translation, to Y, before running the Payroll Archive process. Youmust set this only once. If you have run the Payroll Archive before setting this parameter, you must roll back the process, setthe Enable Payslip Translation parameter to Y, and rerun the Payroll Archive process.

Install the Correspondence LanguageAlthough the worker's correspondence language may be set to one of several languages, only those languages that areinstalled are supported for translation. To determine the number of languages you must install, consider how diverse theworker population is in terms of their preferred correspondence language.

If the correspondence language isn't one of the installed languages, the Payslip is produced in the base language.

To enable translation of the payslip labels, set the Locale property of both Document of Records and Print Delivery optionswithin the Payslip Extract Definition to Correspondence Language. If you don't want the payslip labels to be translated, leavethe Locale property blank or set it to the base language, for example, en-us, for US English.

For the payslip data that's not delivered by Oracle, the translated values of the data must be available in the application.Enter translated values for the base language and each of the installed languages that needs payslip translation support.



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For example, if you have created additional element names and its associated balances, you must also enter their translatedvalues in the application. Otherwise, the translated values aren't reflected in the payslip PDFs.

Related Topics

• Overview of Translating Modified Text

Add Bursting to Print Delivery OptionWhen you enable payslip translation, both the transactional data and the labels on the payslip are translated. As only onelanguage can be applied to all the labels on a payslip, payslips for different languages must be in their own PDF. One way ofensuring that is to add the Bursting configuration on the Print Delivery option within the Payslip Extract Definition.

Add the Bursting ConfigurationComplete the following steps to add Bursting to the Print Delivery option for the payslip:

1. Select the Manage Extract Definitions task in the Data Exchange work area..2. In the Search window, enter Payslip in the Name field.3. Select Archive Retrieval in the Type field.4. Select a legislative data group and click Search.5. Click Payslip in the Search Results region.6. Click the Deliver tab in the Manage HCM Extract Definitions: Payslip page.7. Select the Printed Payslip Delivery Option Name row in the Extract Delivery Options section.8. Complete the following in the Additional Details section.

a. Select Default in the Value column of Bursting.b. Remove content in the Value column of Locale.c. Select Search in the Attribute column of Locale.d. In the Search and Select: Attribute window, enter the following, as given in the table below.

Field Value

Parent Data Group

Global Archive Payroll Calculation Breakdown

Attribute

Correspondence Language

Record

Global Calculation Breakdown ID Information

9. Click Search, and then OK.10. Click Save and then Submit.

Related Topics

• Overview of Translating Modified Text

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Rate Precision in PayslipsUse the Payslip Rate Precision process configuration parameter to set a fixed, positive integer value as the precision value forrates displayed on the payslip. The default value is two decimal places. Set this parameter before you run the Periodic PayrollArchive process.

A fixed rate precision value ensures ease of implementation, user control, and consistency across different rates and elemententries. Setting the rate precision value does not impact the calculation of payroll or the accuracy or precision of payments.You are only defining the number of decimal places for the rates shown on the payslip.

The precision value you set for the number of decimal places for the rates displayed on the payslip, is dependent on thefollowing factors:

• Currency: Some currencies require a rate precision value higher than the default value of two.

• Multiplying factor for the rate: precision value you set for the element rates displayed on the payslip is dependent onhow high you expect the quantity to be. For example, if you expect the quantity, say hours to be high, set a precisionvalue higher than the default value of two.

Any precision value you set on the report template overrides the value you set on the Archive process. For rates needing alower precision value, you must define it in the report template. The precision value you set on the Archive process appliesfor the calculation results and appears by default on all reports that use the archived data. However, you can configure yourreport template to display a value that is lower than the value on the Archive process. In the report template, you cannot set avalue that is higher than that on the Archive process.

For example, suppose you want your hourly employees to see four decimal places for rates and the salaried employees tosee only two decimal places on their payslips. Set the Payslip Rate Precision process configuration parameter to four decimalplaces. Then, modify the report template to display the rates with two decimal places only for salaried employees.

Related Topics

• Report Days and Units in Payroll Reports

Payslip Reprinting ReportUse the Payslip Reprinting Report to generate a report to include payslips for an employee or a specific group of employeesspanning across multiple pay periods.

For example, you may generate the report for:

• Employees who generally view their payslips online and are on long-term leave of absence, for instance on maternityleave, and hence cannot view their payslips online.

• Employees who are terminated and can no longer view their payslips online and are paid severance payments afterthey have left the organization.

• Your legal department, who has requested for an employee’s payslips for a specific financial year.

You can run this report for:

• Multiple employees

• Multiple pay periods

• Any date range

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• Any number of times

To run this report, use the Payslip Reprinting Report task from the Payroll Calculation or Checklist work area.

Prerequisites

Run this report after successful completion of the Generate Payslips process. The report retrieves the payslips that arealready generated by the Generate Payslips task and stored in the Document of Records. Hence ensure that the GeneratePayslips task is run for the pay periods, employees, and date range for which you want to run this report.

Report ParametersThe report parameter values determine which records to include in the report. Most parameters are self-explanatory, while thefollowing have special meaning in the context of this report.

Process Start Date

The report excludes pay slips with a payment date that is earlier than the date specified.

Process End Date

The report excludes pay slips with a payment date that is later than the date specified.

Payroll

The name of the payroll you use to run this report.

Consolidation Group

Use this field to run the report for a consolidation group. For example, you can use this field to run this report for a subset ofpayrolls. You can select a value only if you have a predefined consolidation group.

Location

Use this field to print the payslips for employees who have at least one assignment for the selected location.


Use this field to run the report for persons belonging to a specific payroll relationship group. You can specify a value only ifyou have a predefined payroll relationship group.

Person

Use this field to print the payslips for a specific employee.


Use this field to run the report for a specific process configuration group, instead of the default one. A process configurationgroup is used to set rules for payroll processes, such as passwords or number of threads. You can select a value only if youhave a predefined process configuration group.

Note: Use the Manage Object Groups task to define any of the groups mentioned above, before you can use ithere.



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Delivery Preference

Use this field to select any of the following options:

• Online

• Paper

• Both online and paper

You can also run this report for a specific payroll statutory unit or tax reporting unit.

Report ResultsThe report provides a single output file and also includes employees who have not opted for a printed payslip.

FAQ for Payment Methods

How can I display employee work location and department on theirpayslip or check?Define a check or payslip template to include the archived payroll information, including the employee's work location anddepartment details. Use this template in the BI Publisher Report and add the report to the Generate Check Payments orGenerate Payslips flow. When you submit the flow, the flow output is automatically generated based on the template includedin the BI Publisher Report.

Related Topics

• Add a BI Publisher Report to a Flow

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Chapter 12Setting Up Payroll Process Configuration

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12 Setting Up Payroll Process Configuration

Payroll Process Configuration GroupsPayroll process configuration groups provide sets of processing parameters, primarily related to logging and performance.Select a process configuration group when you run a process, such as a new-hire flow or termination flow, or an extractprocess or report.

If you don't select a process configuration group, the application uses the parameters in the default group. You must specifythe default group in the Process Configuration Group ACTION_PARAMETER_GROUPS profile option.

Here's the list of tasks where you can set up profile options and default process configuration groups.

Action Task and Page

Edit predefined process configurationgroups

Default Group tab of the Manage Payroll Process Configuration page

Create additional process configurationgroups

Group Overrides tab on the Manage Process Configuration Group page

Select a process configuration group asthe default at the site or user level

Manage Administrator Profile Values task

To open this page, use the Manage Payroll Process Configuration task from Quick Actions on the Home page.

Create a group with the logging parameters turned on to troubleshoot processes. You can also specify different performanceparameter values, such as chunk size and buffer size, for running different processes.

Parameters

Payroll Process Configuration ParametersPayroll processing parameters are system-level parameters that control aspects of payroll-related processes, such as flowsand reports. Values for each parameter are predefined with the application, but you can override these values as part of yourinitial implementation and for performance tuning. Use the Manage Payroll Process Configuration task from the Quick Actionsmenu.

Processing ParametersThe effects of setting values for specific parameters may be system-wide. When you submit a process that uses flows, suchas a batch upload, new hire, or report process, it reads values from the PAY_ACTION_PARAMETERS table.



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Note: You should understand the concept of array processing and how this affects performance before settingsome parameters.

The application doesn’t allow a blank value for any parameter and you must delete the parameter row if the parameter isn’trequired.

The following table describes processing parameters and lists values and predefined default values. These parameters applyto HR applications including payroll and payroll interface.

Parameter Description Values

Assignment ID to End Logging

Assignment ID upon which logging ends.

Default: All assignments

Assignment ID to Start Logging

Assignment ID upon which logging starts.

Default: All assignments

Balance Buffer Size

Buffer size for array inserts and updatesof latest balances, based on one row perbalance.

Tip: If your trace files show differencesbetween execute and retrieve timings,look at the buffer sizes you're using.Try setting each of these to 100.

Maximum: 1000 Minimum: 1 Default: 500

Batch Error Mode

Determines error notifications for payrollbatch loader uploads.

ALL = all rows ANY = any rows NONE = no errors Default: ANY

Chunk Size

Number of payroll relationship actions thatprocess together. See also the ParallelProcessing Parameters topic.


Disable Locking Code in Check ProcessPost-Populate Method

Disables the locking code added to the post-populate method to improve check processperformance. This parameter isn't available by default. Toadd the parameter, search for the lookuptype PAY_ ACTION_ PARAMETER_ TYPEon the Manage Common Lookups pageand add the lookup code ORA_ DISABLE_POST_POP_FIX.

Yes, No Default: No Don't change this value unless advised byOracle Support.

Element Entry Buffer Size

Buffer size that payroll runs use in the initialarray selects of element entries, elemententry values, run results, and run result valuesper assignment.




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Formula Execution Logging

Sets the logging level to investigate formulacode problems. See also the LoggingProcessing Parameters topic.

Delete the parameter row if the parameterisn’t required.

Historic Payment

Removes the validation to look for banksactive as of the process date. This validationis usually enforced by the payments process. This parameter isn't available by default. Youcan add it in test environments only. To addthe parameter, search for the lookup typePAY_ ACTION_ PARAMETER_TYPE on theManage Common Lookups page and addthe lookup code HISTORIC_ PAYMENT.

Yes, No Default: No

Logging Area

Area where code logging is performed. Seealso the Logging Processing Parameterstopic.

The values correspond to C-code entriesin the form PY_ENTRY, that includes thefunctional area that has logging enabled.

Logging Category

Helps investigate problems with largevolumes of detailed data. See also theLogging Processing Parameters topic.

You can set any number of categories byspecifying multiple values. For example,enter GMPE, for general logging information,routing information, performance information,and element entry information. Refer to the Logging Processing Parameterstopic in the Related Links section forapplicable values. Delete the parameter row if the parameterisn’t required.

Manual Task Processing

Enables processing of manual tasks whenSOA server is unavailable.

Y, N Default: Y

Maximum Errors Allowed

Number of payroll relationship actions thatyou can roll back, when rolling back aprocess.

Minimum: 0 Default: CHUNK_SIZE or 20

Maximum File Size for View Report Output

Maximum size in bytes of the report file toshow in the output window. This parameter isn't available by default. Toadd the parameter, search for the lookuptype PAY_ ACTION_ PARAMETER_ TYPEon the Manage Common Lookups page andadd the lookup code BI_ OUTPUT_SIZE.

Must be a positive number. Default: 10000000

Maximum Iterations Allowed per Run Action

Maximum number of iterations allowed perrun action within net-to-gross calculationswithin the payroll run.

Minimum: 0 Default: 15

Maximum Number of Payroll RelationshipActions to Roll Back

Number of payroll relationship actions thatyou can roll back, when rolling back aprocess.




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Multithreaded XML Generation for Extracts

Generates XML for extracts using multiplethreads.

Y, N Default: N

New Hire Flow Pattern

Name of the customer-defined flow that’striggered as part of the new hire process.

Delete the parameter row if the parameterisn’t required.

Notifications Expiration Offset

Number of days before a payroll flownotification is automatically deleted.


Payroll Batch Loader Encryption Type

The type of encryption applied to source filesloaded using the payroll batch loader.

PGPSIGNED, PGPUNSIGNED,PGPX509SIGNED, PGPX509UNSIGNED Delete the parameter row if the parameterisn’t required.

Payroll Criteria for Element Eligibility

Enables eligibility by payroll for assignment-level elements.

Yes, No Default: No

Process Timeout

Number of minutes before the Run BalanceGeneration process times out.

Minimum: 0 Default: No timeouts limit enforced. Deletethe parameter if no value is specified.

Remove Report Assignment Actions

Removes report processing actions aftergenerating reports.

Yes, No Default: Yes

Run Result Buffer Size

Buffer size for array inserts and updates,based on 1 row for each payroll run result.


Shuffle Chunk Processing

Random processing of order chunks forassignment actions.

Yes, No Default: No

Suppress Empty XML Tags in ExtractReports

Reduces the size of extract output for reportsby excluding tags with blank values in XMLoutput files.

Y, N Default: Y

Termination Flow Pattern

Name of the customer-defined flow that’striggered as part of the termination process.

Delete the parameter row if the parameterisn’t required (No predefined Termination flowpattern).

Threads

Total number of subprocesses that you canrun from the Oracle Enterprise SchedulerService. See also the Parallel ProcessingParameters topic.




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Trace

Enables the database trace facility forapplication processes written in C only.

Yes, No Default: No

Trace Level

Sets the trace level of the trace event. Togenerate the finest level of detail, enter thehighest value.

1, 4, 8, 12 Default: None

User Messaging

Enables detailed logging of user-readableinformation to the PAY_ MESSAGE_LINEStable.

Yes, No Default: No

XML_ DATA_SOURCE

For document records delivery optionsperformance purposes, determines if XML isderived from the database.

Y, N Default: Y

Payroll-Specific Processing ParametersThe following table lists the processing parameters that are applicable only for Oracle Fusion Global Payroll.


Accounting Date for Transfer to GeneralLedger

The date to transfer and post journal entriesfor costing results to Oracle Fusion GeneralLedger.

E = Date Earned P = Process Date EVE = For the Partial Period Accrual Reversalprocess, date earned is used. If the dateearned isn't defined for the time periods onthe Payroll Definition page, the payroll periodend date is used. For the payroll run that includes the actualcosts, the process date of the payroll run isused. Default: P

Cost Buffer Size

Buffer size for array insert and selectstatements when calculating the costing ofthe payroll run results.


Date to Retrieve Assignment Status

Date earned or date paid, used to determinethe effective date for checking assignmentstatus in payroll calculations.

E = Date earned P = Date paid Default: P

Earliest Retroactive Processing Date

The earliest date that retroactive processesare calculated. Updates made before thisdate aren’t recalculated.

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Extract Data Group for Payroll Register

Limits the records to include in the output filebased on the specified data group name.

Default: No data group

Limit Payroll Register Output by Data Group

Enables processing a subset of records toinclude in the output file when an extract datagroup parameter value is also specified.

Y, N Default: N

Override Location for Tax Libraries

Directory location for Quantum tax libraries.

There are no set values. Values must bedirectory structures where the tax libraries arestored. Delete the parameter row if the parameterisn’t required. Default: $VERTEX_ TOP/lib

Reversal and Balance AdjustmentAccounting Date

Accounting date based on one of thefollowing dates:

• The process date of reversal orbalance adjustment

• The process end date of the Transferto Subledger Accounting task. Youcan use this task to transfer journalentries for costing results to OracleFusion General Ledger.

T = Transfer using end date of the Transfer toSubledger Accounting task as the accountingdate P = Use process date of the reversal orbalance adjustment as the accounting date Default: P

Wage Basis Rules Buffer Size

Used in array selects from the PAY_TAXABILITY_ RULES table within the PayrollCalculation process.


Logging Processing ParametersUse logging parameters to investigate problems that aren't easily identified in other ways. In a normal operation, disablelogging because it can impact the performance of the process you're logging.

Note: Prepare log files before contacting Oracle Support for assistance. Define the logging area, category, andrange of assignments before resubmitting the problem.

Logging ParametersTypically, you use this feature during your initial implementation and testing before you go live. In a normal operation youshould disable detailed logging.

The three processing parameters for logging are:

• Logging Area

• Logging Category

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Logging Area

The Logging Area parameter works with the Logging Category parameter to limit the code area for logging. Even if you setthe logging category, you must also set the logging area if you want to limit logging to a particular code area.

The values correspond to C-code entries in the form PY_ENTRY, which includes the functional area that will have loggingenabled.

Logging Category

Logging categories define the type of information included in the log. You can set any number of categories by specifyingmultiple values to focus on specific areas that you think may be causing a problem. The default value is no logging.

The following table explains each logging category. It provides the log output information to investigate the problemsencountered.

Parameter Value Logging Category Description

B

Balance Information

Provides output information that shows thecreation and maintenance of balances usedduring payroll processing.

C

C cache structures information

Provides output information that showsdetails of the payroll cache structures andchanges to the entries within the structure.While working on a service request, Oraclemay ask you to use this parameter to gatheradditional information.

E

Element entry information

Provides output information that shows thestate of the element entries in the processmemory after retrieving entries from thedatabase. The information is providedwhenever data for an entry is changed duringprocessing.

F

Formula information

Provides output information that showsdetails of formula execution, including formulacontexts, inputs, and outputs.

G

General logging information

Provides general information, rather thana specific information type. This parameterdoesn't provide sorted output. In general, it'srecommended that you choose parametersthat provide specific types of information.

I

Balance output information

Provides output information that showsdetails of values written to the database fromthe balance buffers.

L

Balance fetching information

Provides output information that shows thebalances retrieved from the database andwhether or not the process will use thosebalances. (If balances such as Year To Datetotals have expired because the year haschanged, the process resets them and usesthe new balance.)



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M

Entry or exit routing information

Provides output information to show whenany function is entered and exited. This information is indented to show thecall level, and can be used to trace the pathtaken through the code at the function calllevel. Often, this information is useful whenattempting to track down a problem such asa core dump.

P

Performance information

Provides output information to show thenumber of times certain operations takeplace at the assignment and run levels andwhy the operation took place. This parameteris often used to balance the buffer array writeoperation.

Q

C cache query information

Provides output information that showsthe queries being performed on the payrollcache structures. While working on a servicerequest, Oracle may ask you to use thisparameter to gather additional information.

R

Run results information

Provides output details of run results and runresult values from the Run Results buffer orthe Values buffer before writing them to thedatabase. This enables verification that thebuffer contents were correct.

S

C cache ending status information

Provides output information that showsthe state of the payroll cache before theprocess exits, whether that process endswith success or an error. While workingon a service request, Oracle may ask youto use this parameter to gather additionalinformation.

T and Z

PL/SQL detail and PL/SQL output

To obtain detailed information about the PL/SQL calls made by the Payroll application,use the combination of the T parameter andthe Z parameter. This combination is typically useful forobtaining information about payroll processesthat use a large amount of PL/SQL code,such as prepayments and archive. Using this parameter, the process buffersoutput while it's running and places it the endof the log file after processing is complete.Each payroll process instance has its own logfile, located under the log subdirectory for theparticular process ID.

V (USA and Canada only)

Vertex tax calculation information

Provides output information that showsthe values passed in and out of a third-party Vertex tax engine. This parameter also



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provides a separate file in the Out directorythat shows the internal settings of the Vertexengine. This logging option is available tocustomers in the USA and Canada only.

Formula Execution Logging

Formula execution logging is the code area where logging is performed. This processing parameter mechanism is onlyavailable for formula logging in the payroll run. Specify parameter values as a character or combination of characters todetermine the area for logging. For example, the string di (the combination of d and i) corresponds to the logging of databaseitem cache access and formula input and output values. The default value is no logging.

Caution: Use the dump logging options in rare circumstances only. The T trace option, which generates verylarge amounts of data, would significantly slow down processing.

The following table lists formula execution logging parameter values and its details.

Parameter Value Meaning

c

Change contexts

d

Database item cache access

D

Database item cache dump

f

Formula cache access

F

Formula cache dump

I

Formula input/output values

m

Miscellaneous

n

Nested calls

s

SQL execution (database item and PL/SQL formula function calls)

T

Trace (very large level that provides the inputs and outputs of every call made when executing aformula)

w

Working storage area access

W

Working storage area dump

1

Level 1 (combination of c. f, i, and m)



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Parameter Value Meaning

2

Level 2 (combination of 1, c, d, n, and w)

3

Level 3 (combination of 2, D, s, and W)

4

Level 4 (combination of 3 and F)

5

Level 5 (combination of 4 and T)

Parallel Processing ParametersPayroll processes are designed to take advantage of multiprocessor computers. You can improve performance of your batchprocesses, such as Calculate Payroll or Calculate Gross Earnings, by splitting the processing into a number of threads, orsubprocesses, which run in parallel.

To improve performance you can also set the number of payroll relationship actions that process together and the size ofeach commit unit for the batch process.

Parallel Processing ParametersThreads

When you submit a batch process, the Threads parameter determines the total number of subprocesses that runconcurrently. The number of subprocesses equals the Threads value minus 1.

Set this parameter to the value that provides optimal performance on your computer:

• The default value of 1 is set for a single-processor computer.

• Benchmark tests on multiprocessor computers show that the optimal value is approximately 2 processes perprocessor.

For example, if the server has six processors, set the initial value to 12 and test the impact on performance ofvariations on this value.

Chunk Size

The Chunk Size parameter:

• Indicates the size of each commit unit for the batch process.

• Determines the number of assignment actions that are inserted during the initial phase of processing.

• Sets the number of assignment actions that are processed at one time during the main processing phase.

This parameter doesn't apply to all processes, such as Generate Check Payments and Retroactive Pay.

To set the value of the Chunk Size parameter, consider the following points:

• Parameter values range from 1 to 16,000.

• The default value is 20, which was set as a result of benchmark tests.

• Each thread processes one chunk at a time.



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• Large chunk size values aren't desirable.

FAQ for Payroll Process Configuration

How can I improve performance and troubleshoot flows?Add parameters to a payroll process configuration group to optimize performance and troubleshoot your payroll processes.To process large volumes of records, use the Threads and Chunk Size parameters. To troubleshoot processes, add theLogging Category or Formula Execution Logging parameters to a configuration group and rerun the process using thatconfiguration group. Using these parameters enables you to investigate formula code problems.



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Chapter 13Setting Up Auditing and Data Validation

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13 Setting Up Auditing and Data Validation

Auditing Business Objects

Audit Payroll Business ObjectsSet up auditing policies to maintain a history of changes to your important data: what changed, who changed it, and when.The audit tracks changes to attributes of payroll business objects made using the application pages, web services, or payrollprocesses, which use Oracle Enterprise Scheduler.

You can view the audit history to determine how a business object obtained its current value and to compare old and newvalues. To view the history or to create an audit report from the Audit History work area, you require appropriate duty rolesand privileges. Enterprises typically assign the following two audit duty roles to the application implementation consultant andmaster data management application roles:

• Audit trail management, which determines the objects audited

• Audit trail report viewing to view the audit history

Payroll Business ObjectsWhen you set up auditing for payroll, you configure Oracle Fusion Applications business objects on the Manage Audit Policiespage in the Setup and Maintenance work area:

1. Select the HCM Payroll application on the Configure Business Object Attributes page.2. Specify the attributes to audit for the objects.

For example, you might audit the start and end date attributes for the calculation card component details.

The following table lists the payroll business objects you can set up for auditing payroll. You track changes to attributesspecified for these objects.

Payroll Business Object Description

Assigned Payroll

Holds date-effective attributes about payrolls assigned to a worker.

Assigned Payroll More Details

Holds details that aren't date-effective about the payroll assigned to a worker.

Calculation Card

Holds values required for calculating payroll components.

Calculation Card Component

Holds the definition of a component that represents one or more logically related payrollcomponents.

Calculation Card Component Detail

Holds the input values of a person's calculation card.

Calculation Reporting Card

Defines the tax reporting units that report the calculation.



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Payroll Business Object Description

Calculation Reporting Card Usage

Attaches a reporting card to a person record.

Element Entry

Holds earning and deductions details for a person.

Element Entry Value

Holds the values of the compensation and benefits granted to a person.

Payroll Calculation Range Value

Defines the values or sets of values used in the calculation of a value definition.

Payroll Calculation Value Definition

Defines how a value is calculated in payroll processing.

Personal Payment Method

Holds the payment method details for a person.

Audit PoliciesAuditing is used to monitor user activity and all configuration, security, and data changes that have been made to anapplication. Auditing involves recording and retrieving information pertaining to the creation, modification, and removalof business objects. All actions performed on the business objects and the modified values are also recorded. The auditinformation is stored without any intervention of the user or any explicit user action.

Use audit policies to select specific business objects and attributes to be audited. The decision to create policies usuallydepends on the type of information to be audited and to the level of detail required for reporting.

Enabling Audit FunctionalityFor Oracle Applications Cloud, you must configure the business objects and select the attributes before enabling audit. Ifyou enable audit without configuring the business objects, auditing remains inactive. By default, auditing is disabled for allapplications. To enable and manage audit, ensure that you have a role with the assigned privilege Manage Audit Policies(FND_MANAGE_AUDIT_POLICIES_PRIV). For appropriate assignment of roles and privileges, check with your securityadministrator.

To enable auditing for Oracle Fusion Middleware products, select one of the levels at which auditing is required for thatproduct. The audit levels are predefined and contain the metadata and events to be audited. For more information, see AuditEvents for Oracle Applications Cloud Middleware (Doc ID 2114143.1) on My Oracle Support at https://support.oracle.com.

If you don't want an application to be audited, you can stop the audit process by setting the Audit Level option to None.

Related Topics• Overview of Audit Configuration

• Audit Events for Oracle Applications Cloud Middleware

Audit Configuration for Business Object AttributesAudit enables tracking the change history of particular attributes of a business object. However, those objects and theirattributes must be selected for audit and auditing must be enabled for that application. Your configuration settings determine

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which attributes to audit for a given object, and when the audit starts and ends. Auditing takes into account all the operationsperformed on an object and its attributes, such as create, update, and delete. To configure audit business object attributes,use the Manage Audit Policies task in the Setup and Maintenance work area.

Selecting an ApplicationTo set up auditing, you must select a web application that contains the required business objects that can be audited. Fromthe list of business objects, select those business objects that you want to audit. Selecting a business object also displays itsattributes that are enabled for auditing.

Selecting AttributesFor each selected business object to be audited, select the corresponding attributes to include in the audit. All attributesthat belong to that object are by default selected for audit and appear on the user interface. However, you can add orremove attributes from the list. When you remove an attribute from the list, you stop auditing it even when the parent objectis selected for audit. So, if you want an attribute to be audited, you must add it to the list. If the object selected in an audithierarchy is also a part of several other audit hierarchies, the attribute configuration for that object is applicable to all thehierarchies in that application.

Tip: For business objects based on flexfields, select the Flexfields (Additional Attributes) check box to view andadd or remove flexfield attributes, to include or exclude them from the audit.

Starting and Stopping AuditThe business object is ready for audit after you select its attributes and save the configuration changes. However, to startauditing, the audit level for Oracle Applications Cloud must be set to Auditing on the Manage Audit Policies page.

To stop auditing an object, you can deselect the entire object and save the configuration. As a result, all its selected attributesare automatically deselected and aren't audited. To continue to audit the business object with select attributes, deselectthose attributes that aren't to be audited. When users view the audit history for an application, they can specify the period forwhich they want the results. Therefore, make a note of when you start and stop auditing an application.

For example, users intend to view the audit history of an object for the previous week, but auditing for that object wasstopped last month. They wouldn't get any audit results for that week, because during the entire month that object wasn'taudited. Even if you enable audit for that object today, users can't get the wanted results because audit data until today isn'tavailable.

Audit HistoryUsing audit history you can view changes to the application data such as the business objects that were created, updated,and deleted. To view the history or to create a report, you must have a role with the assigned privilege View Audit History(FND_VIEW_AUDIT_HISTORY_PRIV). For appropriate assignment of roles and privileges, check with your securityadministrator.

To open the Audit History work area, click Navigator > Audit Reports.

The default search displays a summary of the audit history in the search results table. It includes key data such as date, user,product, event type, business object type, and description. For a detailed report, search again with modified search criteria.You can export the report summary to Microsoft Excel.



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The following table lists the search parameters used and the outcome of their selection in the detailed report.

Search Parameter Result of Selection

Business Object Type

Note: This parameter is applicableonly for the business objects thatbelong to Oracle ApplicationsCloud.

• Narrows the search results to that specific business object within the selected product.• Enables the Show Attribute Details check box.

Include Child Objects

Displays all the child objects that were listed for that business object when audit was set up. Forexample, a sales order object that contains several items as child objects.

Note: Displays the objects at the immediate parent-child level only. To view the children atsubsequent levels, select the child object as the business object type and search again.

Show Impersonator

Displays the details of the impersonator who modified the objects during an impersonation session.

Show Attribute Details

Enables the attribute list so that users can select either all attributes or a specific attribute to viewthe changes. Based on the selection, the search results indicate whether the attribute is created,updated or deleted, and the corresponding old and replaced values.

Show Additional Object IdentifierColumns

Displays the instances (contexts) in which the business object was used. The context values identifythe objects and the transactions in which they were used. Each context is unique and assigns aunique description to the business object.

Note: The default report displays a standard set of columns that contain prominent details of the audit history.To view additional details, you can change the display of columns.

Related Topics

• Types of Audit Events

Data Validation

Payroll Data Validation ReportBefore you run payroll or any other statutory processes or reports, the required HR and payroll data setup must be completefor all your workers. Missing or noncompliant data can impact legal processes or reports.

The Payroll Data Validation Report provides details of missing or statutorily noncompliant data at the worker and organizationlevel. Prior to running the payroll process or any other report, run the Payroll Data Validation Report. You can then takecorrective action as necessary to complete the data setup and correct noncompliant data.

You can run this report from the Payroll Calculations or the Payroll Checklist work area.

http://www.oracle.com/pls/topic/lookup?ctx=fa19c&id=D02C82F595D7648DE040D30A688140EF



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During the implementation phase, add the business rules and validation messages at the enterprise or legislative data grouplevel. These validations are in addition to the country-specific validations that are predefined in the application.

Validation LevelsThe data group you select when adding validation rules to the Data Validation Report determines the level of validation.For example, you might have a validation rule at the tax reporting unit level or at the person details level. When adding avalidation, you must ensure a database item exists for the attribute for which you're adding the validation.

Set Up Validation RulesUse the delivered formula 'Global Attribute Mandatory Check' to set up validations to identify missing data. You add thevalidations to the Data Validation Report extract definition. The summary of the required steps is as follows:

1. Identify a suitable short name for the attribute for which you want to add the validation, for example, ASG_JOB_CODE.Prefix it with CST to mean user-defined. Therefore, the short name should be CST_ASG_JOB_CODE.

2. Set up a lookup code to control the validation. For mandatory validations, that you set up using the deliveredformula, set up the lookup code as a short name suffixed by >MC. For example, CST_ASG_JOB_CODE>MC.

3. Based on the level at which you need the validation, you must create the records and data elements in theappropriate data group. Identify the relevant data group to add the validation and create a record in the group. Forexample, add assignment level validations to the Assignment Data Group.

Note: A database item must exist for the attribute for which you're adding the validation.

4. Add the validation and create the extract definition attributes.5. Generate and compile the formula at the report record.6. Run the appropriate Payroll Data Validation Report to include the validations.

Control the ValidationsUse the delivered ORA_HRX_GLB_VALIDATION_OBJECTS lookup type to set up a lookup code that you can use to control thevalidation. For example, you can use this lookup code to add multiple country tags to a validation. Alternately, if the validationis no more valid for the country, you can remove the previously added country tag from the lookup code.

Note: If you don't add a country tag, the application doesn't trigger any validation.

Validation TypesThe validations can be simple or complex.

The application triggers simple validations if you haven't provided a value for an attribute required for a report or a process.For example, the Tax Reporting Registration Number is missing at the organization level or the National Identifier value ismissing for a worker. You can create a simple validation by using the delivered formula 'Global Attribute Mandatory Check'and the appropriate database item group.

The application triggers complex validations when there is more than one attribute included in the validation. For example, avalue is missing for a National Identifier Type pertaining to a worker.

For coding complex validations, Oracle recommends that you use data elements of type Rule with a user-defined RuleFormula to perform the validation. You must deliver these data elements in a record of type Formula.

User-Defined Rule FormulaFor coding complex validations, Oracle recommends that you use extract attributes of type Rule with a user-defined RuleFormula to perform the validation. Consider the following for coding user-defined Rule Formula:

• Check if the formula is of type Extract Rule.



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• Check that the lookup code exists for the short code of the data element, and is enabled for the legislation code, forwhich the report is run.

• Check if the formula is associated with the correct data element. Since this is a user-defined formula, check and runonly if short code matches.

• Perform the validation to return validation message text or return a NULL value. The message text should be fewerthan 240 characters or the application considers only the first 240 characters of the message.

Data SecurityBy default the report is submitted through an elevated user that has full data access and is secured through the list of valueson the report parameters. However, you can configure the Data Validation Report to run based on the profile of the user whosubmits the report. For example, if a user has access to only employees within a specific payroll or department, the reportcan be configured to report data only for those employees.

Validation Rules for Data Validation ReportYou can add validation rules to the Data Validation Report to identify missing data required to run a process or report. Youcan run the report and make relevant corrections to complete the employer or payroll-related data.

Use the Manage Extract Definitions task in the Data Exchange work area to add a validation rule to the Data Validation Reportextract definition.

Rule FormulaUse the delivered formula 'Global Attribute Mandatory Check' to set up validations to identify missing data. You add thevalidations to the Data Validation Report extract definition.

This formula includes certain important enhancements such as supporting translated messages. It also offers the ability tocontrol the validations without you deleting the validation already configured by you or delivered by Oracle. It's not mandatoryfor you to migrate your existing validations from the 'Global Null Check Rule' formula to the new one. Oracle recommends tomigrate to the new formula to make use of the benefits.

Validation LevelsThe following table describes the validation rules at the various levels.

Validation Level Description

Employee

Add simple validations for a missing attribute at the worker level. For example, if the NationalIdentifier value is missing for a worker.

Organization

Add simple validations for a missing attribute at the organization level. For example, a missing TaxReporting Registration Number.

Repeating Child Entity of a Worker

Add validations at the repeating child entity of a worker. For example, you may add a validation fora missing IBAN number for one of the multiple payment methods that a worker has. You can add avalidation to specify the details of the attribute value (IBAN Number). This attribute value is missingfor the Entity Type (Personal Payment Method) and for the Entity Name (Personal Payment MethodName).

Repeating Child Entity of theOrganization

Add validations at the repeating child entity of an organization. For example, add a validation for amissing SWIFT Code for one of the multiple organization payment methods that's valid for a payrollstatutory unit. You can add a validation to specify the details of the attribute value (SWIFT Code).



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Validation Level Description

This attribute value is missing for the Entity Type (Organization Payment Method) and for the EntityName (Organization Payment Method Name).

Data GroupsThe data group you select when adding validation rules to the Data Validation Report determines the level of validation. Forexample, you might have a validation rule at the tax reporting unit level or at the worker details level.

The processes associated with the Data Validation Report extract definition are:

• Run Payroll Data Validation Report

• Run Worker Data Validation Report

• Data Validation Report for Payroll Interface

The following reports use different data groups to report data validation. You must select a data group for any validation rulesyou add based on the type of data and the level you want validation to occur.

Payroll Data Validation ReportYou can add validation rules to following data groups to report payroll-related data validation:

• Payroll Statutory Units

• Tax Reporting Units

• Payroll Relationships

• Payroll Assignments

Worker Data Validation ReportYou can add validation rules to following data groups to report worker-related data validation:

• Payroll Statutory Units

• Legal Employers

• Reporting Establishments

• Work Relationships

• Person Details

• Assignments

Data Validation Report for Payroll InterfaceYou can add validation rules to following data groups to report worker-related and payroll-related data validation for GlobalPayroll Interface:

• Payroll Group

• Payroll Relationship Group

• Work Relationships

• Assignments

• Payroll Relationships

• Payroll Assignments



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Usage of TagsThe report output has different sections for legal employer, reporting establishment, person, and so on. The validationsreported in the different sections is based on the tag that's added for rule data element. Consider the following while usingtags for adding validation rules for Data Validation Report.

• For reporting validations at organization level, add the validations to Organization Data Groups and the related tags,as given in the table below.

Validation Level Data Group Tag

Legal Employer

Legal Employers

LEMP_RULE_TEXT

Establishment

Reporting Establishments

REP_ EST_RULE_TEXT

Payroll Statutory Unit

Payroll Statutory Units

PSU_RULE_TEXT

Tax Reporting Unit

Tax Reporting Units

TRU_RULE_TEXT

• For reporting validations at worker level, add the validations to the corresponding data group and the predefined tagsas given in the table below.


Employee or payroll relationship levelvalidations

Identify appropriate data groups (Example:Assignment).

RULE_TEXT

• For reporting organization validations or the validations of other entities in a separate table, add the validations to thecorresponding data group and the predefined tags as given below.


All levels other than employee ororganization

Identify appropriate data groups (Example:Assignment).

OTHERS_ RULE_TEXT

Set Up a Lookup Code to Control the Rules for Data ValidationReportsUse the delivered 'ORA_HRX_GLB_VALIDATION_OBJECTS' lookup type to set up a lookup code that you can use to controla validation for the Data Validation Report. You can then use this lookup code to add multiple country tags to a validation.Alternately, you can remove a previously added country tag from the lookup code, if the validation is no more valid for thecountry.

Note: If you don't tag a country, the application doesn't trigger any validation.



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To create a lookup code:

1. In the Setup and Maintenance work area, select the Manage HCM Extract Lookups task.2. Search for and select Manage HCM Extract Lookups.3. Click Create.4. Enter the lookup code details as given in the following table.

Field Description

Lookup Code

Enter a lookup code suitable for the attribute or entity to be validated. If you want to use theOracle delivered formula for mandatory attribute validation, enter suffix as >MC n the lookup code,for example CST_ PERSON_ ADDRESS_LINE 1>MC.

Display Sequence

Enter a unique value for the lookup code. It is recommended to use a sequence number, between201 to 500, for the user-defined lookup codes.

Start Date

Enter 01/01/0001.

End Date

Enter 12/31/4712.

Meaning

Enter a suitable meaning for the lookup code, for example, Person Address Line 1 Check.

Description

Enter a suitable description, for example, Person Address Line 1 check.

Tag

Tag an appropriate country or countries, for which the validation is to be performed. For example,+FR.

Note: If no Tag is setup, the application doesn't perform the validation for any country.

5. Click Save.

Adding Rules to Data Validation ReportsThis example demonstrates how to add a validation rule to the Data Validation Report extract definition. Before makingchanges to the extract, you select a legislative data group. When you submit your changes for a new rule, that validation isavailable for that legislative data group. Depending on the validation rule and the data group you add it to, the validation isincluded when you submit any or all of the following processes:

• Payroll Data Validation Report for identifying missing payroll data needed for processes

• Worker Validation Report for identifying missing HR data needed for processes

• Data Validation Report for Payroll Interface for identifying missing HR or payroll data of persons associated with agiven object group or payroll. The primary goal of the report in this case is to validate the data before it's exported bythe Global Payroll Interface process to a third-party payroll provider.

The following table summarizes the key decisions for this scenario.



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Which data group does the newvalidation belong in?

Person Details Based on the level at which you need the validation, you must create the records and data elementsin the appropriate data group.

What type of validation are you adding?

A rule to check whether each person's Person Address Line 1 attribute has no value. If there is novalue, the report displays an error message.

Prerequisites1. A database item exists that retrieves the value to be validated. The contexts required by the database item are

provided by the block level to which you can add the validation. In this example, a database item must exist for theperson address line 1 attribute.

Create the ValidationTo create a validation:

1. In the Name field, enter Data Validation Report.2. In the Data Exchange work area, select Manage Extract Definitions.3. Search for and select the extract definition to edit as follows:

a. In the Type list, select Full Profile.b. Select a legislative data group.c. Click Search.d. In the search results, click Data Validation Report.

4. On the Manage Extract Definitions page, click Switch Layout.5. In the Session Effective Date field, enter 01/01/0001.6. Add a new record to the Data Group to which you want to add validations as follows:

a. Select Person Details under the Data Group node.b. In the Records section, click Create.

Ensure that the Session Effective Date is 01/01/0001.c. Complete the fields in the Create Extract Record section as shown in this table.

Field Value

Sequence

Enter a unique value for the records within the Data Group. It is recommended to use asequence number between 200 and 600.

Note: Two records in the same Data Group can't use the same sequence number.

Name

Person Address Details

Type

Detail record

Process Type

Fast Formula



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d. Click Save.7. Add the database item attribute as follows.

a. In the Extract Attributes section, click Createb. Complete the fields as shown in this table. This table lists the fields and the respective values for the extract

attributes.

Field Description

Name

Enter a suitable name, for example, Person Address Line 1 Attribute. This name is used inthe validation message.

Tag Name

Person_ Address_Line 1_Attribute

Short Code

Enter a suitable name to match the lookup code and remove the suffix, '>MC', for example,CST_ PERSON_ ADDRESS_ LINE_1.

Start Date

01/01/0001

End Date

12/31/4712

Data Type

Enter a value appropriate to the data that you want to check. For example, Text for addressdetails.

Type

Database item group

Database Item Group

Person Address Line 1

Output Label

Person Address Line 1

Output Column

6

Note: If you don't find the Database Item Group that fetches the attribute value you want tovalidate, it could be that:

• The Extract Attribute is added at an incorrect level (Data Group), or• The Database Item Group is unavailable. Verify the availability of the Database Item Groups by

trying to add the extract attribute to other levels (Data Group). If the required Database ItemGroup is unavailable, you can contact Oracle Support.

For more information, see Database Items for Extracts and Formulas in Oracle Fusion HCM guide on MyOracle Support (1565118.1).

c. Click Save and Close.8. Create another attribute for the validation rule as follows:

a. In the Extract Attributes section, click Createb. Complete the fields as shown in this table. This table lists the fields and the respective values for the validation

rule.



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Field Value

Name

Person Address Line 1 Rule

Tag Name

RULE_TEXT

Note: Enter this value exactly.

Short Code

CST_ PERSON_ ADDRESS_ LINE_1>MC

Note: The short code must include the short code of the database item attribute youcreated followed by a space and the suffix: >MC. The short code is case-sensitive.

Start Date

01/01/0001

End Date

12/31/4712

Data Type

Text

Type

Always set as Rule.

Rule

Global Attribute Mandatory Check

Output Label

Enter a value same as the Short Code, for example, CST_ PERSON_ ADDRESS_ LINE_1-RULE.

Output Column

Enter a unique value within the record, 26.

Results Display Option

Summary and detail

c. Click Save and Close.9. In the Actions menu, select Generate Formula.

10. In the Actions menu, select Compile Formula.11. Click the Extract Execution Tree node and verify that all formulas are compiled.12. Click Submit.

Payroll Data Validation ReportRun the Payroll Data Validation Report to generate a list of workers with missing or noncompliant payroll data. Use this reportto verify if the required data setup for all workers for the payroll run or process is complete.

Payroll managers can run this report from the Payroll Calculations or the Payroll Checklist work area. Run this report prior torunning the payroll process.



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ParametersMost parameters are self-explanatory, while the following have special meaning in the context of this report.

Payroll Flow

Select the required payroll flow name for the process that is being run. Enter a value each time the process is run.

Effective As-of Date

Use this field to specify the first effective date of the payroll process to include in the report. The data status is verified as ofthe selected effective date.

Payroll Statutory Unit

Select the Payroll Statutory Unit for which the report is to be run.

Report ResultsThe report provides details of missing or noncompliant statutory data for the selected payroll statutory unit as of the selectedeffective as-of date. The details are at the worker or organization level.

You can view the PDF output of the report or the Excel output, as required.

Data Security in Payroll Data Validation ReportsConfigure the Data Validation Report to run based on the profile of the user who submits the report. For example, if a userhas access to only employees within a specific payroll or department, as defined by the data security profile attached to theuser's role, the report can be configured to report data only for those employees.

Here are the tasks required to configure and run the report based on the profile of the user submitting the report:

1. Sign in as IT Security Manager and define HCM data roles and setup data security. Assign the data roles to theapplication user as per the requirement of your enterprise.

2. Sign in as Payroll Manager and secure the 'Payroll Data Validation Report' at the Legislative Data Group level.3. Sign in as application user to whom the privileges are assigned and run the report.

Define Data Roles and Assign Data Roles to the Application UserNo predefined HCM data roles exist. While creating an HCM data role, include a job role. The secured HCM object types thatthe job role accesses are identified automatically, and sections for the appropriate security profiles appear. Select or createsecurity profiles for those object types in the HCM data role.

For each object type, you can include only one security profile in an HCM data role, which is known as Security Profile.Consider the following to complete the setup.

• You must have the IT Security Manager Job role to perform this task.

• To create an HCM data role, use the Assign Security Profiles to Role task in the Setup and Maintenance work area.

• For more information on setting up the data security as per the requirement of the enterprise, see Oracle HumanCapital Management Cloud Securing HCM.



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Here are the steps required to configure the report based on the profile of the user submitting the report.

1. Navigate to the Checklist work area under Payroll.2. Select the Manage Payroll Flow Patterns task.3. Search for the Run Payroll Data Validation Report flow pattern.4. Select the required Legislative Data Group.5. Click Edit.6. Click Go to Task and click Edit.7. Select the row and click the Edit on the tool bar for the row.8. Select the Secure Process or Report check box and click Save.9. Alternately, you can click on Remove all Updates.

Repeat these steps for each Legislative Data Group, where the setting must apply. This configuration, although done on thedelivered flow pattern, is preserved during patching and upgrades.

Submit ReportWhen you submit the report, consider the following:

• Select the Payroll Statutory Unit (PSU) from a secured list of values. If the user's data security is restricted by thePSU, then the user can only run the report for that PSU they have access to, even if the report is run as the elevateduser by default.

• If the user's data access is restricted based on other attributes like department or payroll, configure the report basedon the user profile. This is only if you must restrict the report to the profile of the user submitting the report and onlydata for the department or payroll is reported.


Glossary

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Glossary

absence plan

A benefit that entitles workers to accrue time for the purpose of taking leave and receiving payments during absence periods.

absence type

A grouping of absences, such as illness or personal business that is used for reporting, accrual, and compensationcalculations.

abstract role

A description of a person's function in the enterprise that's unrelated to the person's job (position), such as employee,contingent worker, or line manager.

assignment

A set of information, including job, position, pay, compensation, managers, working hours, and work location, that defines aworker's or nonworker's role in a legal employer.

assignment level

See sourcing assignment level.

assignment statement

A statement that formulas use to set a value for a local variable.

balance dimension

The scope of a balance value, such as the period of time over which it accumulates, and whether it relates to an assignmentor a payroll relationship.

benefits object hierarchy

A structure that enables efficient management of benefits that share similar attributes. The four object types used to structurebenefits offerings are programs, plan types, plans, and options.

Calculation Card

Captures values required for payroll calculations for some earnings and deductions, such as absence payments andinvoluntary deductions. For some countries, you can also create various types of cards to hold default values for tax reportingunits or payroll statutory units.


Glossary

320

calculation component

An individual calculation captured on a calculation card, which is typically associated with an element.

calculation factor

A data-driven rule for calculating a deduction or exemption.

calculation method

An optional component of a calculation factor that supports complex calculations. It specifies a formula to return the finalvalue, such as a cumulative year-to-date amount.

calculation type

The amount or percent based method used to calculate a pricing guideline. Values include Percent of, Percent off, Marginpercent, Amount off, and Absolute value.

calculation value definition

The rates, amounts, or rules that payroll runs use to calculate the components listed on a calculation card.

consolidation group

A grouping of payroll runs within the same period for the same payroll, for which you can run reporting, costing, and post-runprocessing. You can specify a default consolidation group for each payroll definition.

context

A grouping of flexfield segments to store related information.

context-sensitive segment

A flexfield segment that may or may not appear depending upon a context. Context-sensitive segments are attributes thatapply to certain entity rows based on the value of the context segment.

cost profile

Defines the cost accounting policies for items, such as the cost method and valuation structure.

data instance set

The set of HCM data, such as one or more persons, organizations, or payrolls, identified by an HCM security profile.

database item

An item of information that has special programming attached, which formulas and HCM extracts use to locate and retrievethe data.


Glossary

321

dimension

See

distribution

Amount paid to a participant from a plan such as a savings plan or a flexible spending account.

element

Component in the calculation of a person's pay. An element may represent a compensation or benefit type, such as salary,wages, stock purchase plans, pension contributions, and medical insurance.

element classification

Provides various element controls, such as the processing order, balances feeds, costing, and taxation. Oracle predefinesprimary element classifications and some secondary classifications. You can create other secondary classifications.

element eligibility

The association of an element to one or more components of a person's employment record. It establishes a person'seligibility for that element. Persons are eligible for the element if their assignment components match the components of theelement eligibility.

element entry

The record controlling an employee's receipt of an element, including the period of time for which the employee receives theelement and its value.

element group

Group of one or more elements, which you define for running various payroll processes, reports, or for cost distributionpurposes. Use element groups to limit the elements processed by a payroll batch process.

element template

Predefined questions that you answer to create elements and associated items. Templates vary depending on the elementclassification, country, and products you are using.

eligibility profile

A user-defined set of criteria used to determine whether a person qualifies for a benefits offering, variable rate or coverage,compensation plan, checklist task, or other object for which eligibility must be established.

extensible flexfield

Expandable fields that you can use to capture multiple sets of information in a context or in multiple contexts. Someextensible flexfields let you group contexts into categories.

fast formula

A simple way to write formulas using English words and basic mathematical functions. Formulas are generic expressions ofcalculations or comparisons that repeat with different input values.


Glossary

322

final close date

The last date on which a payroll run can process element entries. Typically, the last effective date of the payroll record.

flexfield

A flexible data field that you can configure such that it contains one or more segments or stores additional information. Eachsegment has a value and a meaning.

flexfield segment

An extensible data field that represents an attribute and captures a value corresponding to a predefined, single extensioncolumn in the database. A segment appears globally or based on a context of other captured information.

formula

Combination of operators, functions, dimension and member names, and numeric constants used to calculate databasemembers.

HCM data role

A job role, such as benefits administrator, associated with instances of HCM data, such as all employees in a department.

input value

Field defined for an element that holds information about an element entry that's needed for calculation. For example, hoursworked, an alternate payment rate, or the amount of a bonus or deduction.

job role

A role, such as an accounts payable manager or application implementation consultant, that usually identifies and aggregatesthe duties or responsibilities that make up the job.

key flexfield

Configurable flexfield comprising multiple parts or segments, each of which has a meaning either individually or in combinationwith other segments. Examples of key flexfields are part numbers, asset category, and accounts in the chart of accounts.

key flexfield structure instance

An occurrence of a key flexfield structure that shares the same order of segments as other instances of the key flexfieldstructure. However, each instance uses different value sets to validate the segments.

last standard earnings date

Date on which standard earnings stop accumulating, typically the date of the termination or payroll transfer.

last standard process date

Last date on which element entries are considered for normal processing in a payroll run. Typically, the last day of the payrollperiod in which a termination or payroll transfer occurs.


Glossary

323

legal employer

A legal entity that employs people.

legal entity

An entity identified and given rights and responsibilities by commercial law through the registration with country's appropriateauthority.

legal reporting unit

The lowest level component of a legal structure that requires registrations. Used to group workers for the purpose of tax andsocial insurance reporting or represent a part of your enterprise with a specific statutory or tax reporting obligation.

legislation

The base definition that governs certain rules so that Oracle Global Human Resources can perform differently fordifferent countries and territories in order to meet statutory requirements. Can be predefined by Oracle or defined duringimplementation using the Manage Legislations for Human Resources task.

legislative data group

A means of partitioning payroll and related data. At least one legislative data group is required for each country where theenterprise operates. Each legislative data group is associated with one or more payroll statutory units.

lookup code

An option available within a lookup type, such as the lookup code BLUE within the lookup type COLORS.

lookup type

The label for a static list that has lookup codes as its values.

object group

User-defined set of elements or people that restrict the items you want to include in various processes and reports.

offering

A comprehensive grouping of business functions, such as Sales or Product Management, that is delivered as a unit tosupport one or more business processes.

payment source

Bank account or other source of funds associated with organization payment methods.

payroll employment group

Group of people that payroll runs use for processing, data entry, and reporting.

payroll processing parameters

System-level information that controls settings for flow processes, such as logging, chunk size, and other options that affectprocess performance.


Glossary

324

payroll relationship

Defines an association between a person and a payroll statutory unit based on payroll calculation and reporting requirements.

payroll statutory unit

A legal entity registered to report payroll tax and social insurance. A legal employer can also be a payroll statutory unit, but apayroll statutory unit can represent multiple legal employers.

person type

A subcategory of a system person type, which the enterprise can define. Person type is specified for a person at theassignment level.

personal payment method

Method of payment to a person for a particular payroll. When an administrator assigns a person to a new payroll, paymentsare made using the default organization payment method for the new payroll until a personal payment method exists.

profile option level

The category or layer that defines a profile option. Site, Product, and User are the predefined levels.

profile option value

The setting mapped to the level of a profile option. A profile option may have multiple values set at different levels, such asSite or User.

reduced deductible amount

The final deductible amount after all exemptions are subtracted.

registration

The record of a party's identity related details with the appropriate government or legal authorities for the purpose of claimingand ensuring legal and or commercial rights and responsibilities.

retroactive process

A process that recalculates the amount to pay a person in the current period to account for retrospective changes thatoccurred in previous payroll periods.

role

Controls access to application functions and data.

role mapping

A relationship between one or more roles and one or more assignment conditions. Users with at least one assignment thatmatches the conditions qualify for the associated roles.


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salary basis

Defines validation and payroll details for worker base pay. It identifies the currency and period of the quoted base pay andthe factor used to annualize base pay. It optionally identifies components or rates used to itemize salary adjustments and thegrade rate used to validate salary.

security profile

A set of criteria that identifies HCM objects of a single type for the purposes of securing access to those objects. The relevantHCM objects are persons, organizations, positions, countries, LDGs, document types, payrolls, and payroll flows.

set-level definition

Enables you to segment and share your reference data. Entities that are defined at the set level can be shared by all costorganizations belonging to that set. You can also use the Common set to share the same reference data across all costorganizations.

standard cost

An inventory valuation method in which inventory is valued at a predetermined standard value. You track variances for thedifference between the standard cost and the actual transaction cost, and you periodically update the standard cost to bringit in line with actual costs.

tax reporting unit

A legal entity that groups workers for the purpose of tax and social insurance reporting.

unit of measure

A division of quantity that is adopted as a standard of measurement.

user-defined table

Structure of rows and columns that maintains date effective lists of values. Tables store values as cells for specific row andcolumn combinations.

value set

A predefined set to validate the values that a user enters in the application. The set may be hierarchical.

wage basis rule

Determines the classifications of earnings that are subject to a deduction. Also referred to as a taxability rule.

work relationship

An association between a person and a legal employer, where the worker type determines whether the relationship is anonworker, contingent worker, or employee work relationship.

work relationship group

Group of people that you can define for reporting, for example in HCM extracts.


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